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Donor Stories:
In their own words.
Nonprofit Stories:
What we did with the Foundation’s help.

Compare Private Foundation, Supporting Organization, and Donor Advised Fund

For more information contact

Carol Hawk
Director of Development
Stark Community Foundation
400 Market Avenue North, Suite 200
Canton, Ohio  44702
Phone: 330-454-3426
Fax: 330-454-5855
chawk@starkcf.org

 

  

Private Foundation

  

Supporting Organization
(to Stark Community Foundation)*

Donor-Advised Fund
(at Stark Community Foundation)

Control

Donor retains maximum control of board, investments, and grantmaking

Donor names a minority of the board, which controls investments and grantmaking

Donor provides advice to Foundation board on grants.  Foundation controls investments.

Tax Deductibility

Property: 20% AGI
Cash: 30% AGI

Property: 30% AGI
Cash: 50% AGI

Property: 30% AGI
Cash: 50% AGI

Excise Taxes

Excise taxes (Section 4940-4945)
Usually 2% on net investment income

Exempt from excise tax

Exempt from excise tax

Investment Flexibility

Must divest excess business holdings (closely-held stock) within five years or pay excise tax

Can hold assets that do not conform to Community Foundation's investment policy
(e.g. 100% of "for profit" subsidiary)

Foundation sets investment policy, works with both trustee banks and outside investors to carry out policy.

Continuity

Can continue to future generations

Can continue to future generations

Usually donor may name one generation of successor advisor(s) to the fund

Administration

Burdensome administration:
Accounting
Record keeping
Tax return (form 990-PF)

 

Less burdensome:
Board minutes
Tax return (simple form 990)

Three types:

  • 1) controlled by (most common)
  • 2) operated in connection with
  • 3) controlled in connection with (most rare)

Simple
Can establish in one day

Staff

Can employ family members

Can employ family members
Access to Community Foundation staff (for investment, grantmaking expertise)

Access to Community Foundation staff (for grantmaking expertise)

Start-up Costs

Legal and accounting fees

Less than a private foundation

None

Can other people contribute & receive a tax deduction?

No

Yes

Yes

Converting between entities

Can convert to a supporting organization or donor-advised fund

Can convert to or from a donor-advised fund, or from a private foundation

Can convert to or from a supporting organization, or from a private foundation

 

This comparison is general and not intended to serve as legal advice.

* Any public charity may serve in this capacity

What makes Stark Community Foundation unique?
National Standards Canton BBB
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© 2012 Stark Community Foundation 400 Market Avenue North, Suite 200, Canton, Ohio 44702-2107, Ph: 330.454.3426, Fx: 330.454.5855, info@starkcf.org