How our Donor Advised Fund compares to a private foundation

 

Donor Advised Fund

Private foundation

Role of donor in managing investments

Recommend investment allocation

Must adhere to specific rules concerning investment management

Role of donor in making grants

Recommend grants to any eligible grant recipient

Must adhere to specific rules concerning grant making

Role of donor’s family

Donor can name additional donor advisors and successors to all account privileges upon donor’s death

Donor can appoint relatives to the board, give them responsibility for running the foundation, and provide compensation (subject to limitations)

Privacy

Donor has the options to be acknowledged or remain anonymous on grants.

Required annual filing of IRS Form 990-PF, a public record of assets, contributors and grants.

Deduction limitations

Cash

Securities (long-term)



60% of Adjusted Gross Income (AGI)

30% of AGI, generally deductible at fair market value (FMV)



30% of Adjusted Gross Income (AGI)

20% of AGI, generally deductible at fair market value (FMV)

 

Please note, this information is general and educational in nature. It is not intended to be, and should not be construed as, legal or tax advice.