Private versus Community Foundations

Looking for a highly personal way of giving without having to assume the responsibilities and costs that come along with establishing and maintaining a private foundation? An Amador Community Foundation Donor-Advised Fund could be the right charitable vehicle for you.

Benefits of a Community Foundation Donor-Advised Fund include:

Maximizing your tax savings and simplifying charitable giving
Providing access to professionals who can advise and inform on local nonprofit organizations and community needs
Creating a fund without having to dedicate your gift to a single charitable organization or local cause
Exposing your children or grandchildren to the joys and responsibilities of philanthropy
Ensuring your philanthropic interests will continue in perpetuity
Allowing you to establish a named fund or remain anonymous in your giving

Comparison - Private Foundation vs Community Foundation Donor-Advised Fund

Items to Consider	Private Foundation	Community Foundation Donor-Advised Fund
Setup procedure	Must incorporate and apply for IRS tax-exempt approval	Simple agreement. Can be set up in as little as one day
Initial costs	Liability insurance, direct administrative costs	Pooled administation, low cost, no fees
Tax Benefits Cash Appreciated stock Closely held stock	Up to 30% of adjusted gross income Up to 20 % of adjusted gross income Deduction limited to basis	Up to 50% of adjusted gross income Up to 30% of adjusted gross income Deduction at fair market value
Excise Tax	Usually 2% of investment income	None
Reporting requirements	Annual 990-PF Must be filed by foundation or hired staff	None required of the donor. Community foundation handles all reporting.
Grantmaking	Must research and identify agencies/programs to fund	Community foundation program staff educates donors regarding worthy agencies and programs; provides information on qualified opportunities.
Grant management	Must ensure all recipients are qualified 501 (c) (3) organizations	Community foundation verifies organization's status, plus donors can access the community foundation's strategic grant-making services.
Distribution requirements	5% annual distribution required self-dealing restrictions	None. Donors can make grant recommendations a their discretion
Privacy	Tax return is public record	Donor may choose to remain anonymous