- 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 call:
330-454-3426
| Private Foundation | Supporting Organization | Donor-Advised Fund |
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 | Property: 30% AGI | Property: 30% AGI |
Excise Taxes | Excise taxes (Section 4940-4945) | 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 | 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:
| Less burdensome: Three types:
| Simple |
Staff | Can employ family members | Can employ family members | 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
