Charitable solutions comparison
Compare various charitable giving vehicles to determine which option aligns with your giving goals and objectives.
| Donor advised funds | Private foundation | Charitable remainder and lead trusts | Cash or check | |
|---|---|---|---|---|
| Consider when | You want a simple solution with low costs and the potential to grow tax-free | You want to run your own charity, employ staff, and have greater flexibility on grant-making | You want a trust that can generate income for heirs or charities | You want to keep track of your own donation receipts or make one-off gifts |
| Organizations you can give to | IRS-qualified public charities | Various organizations and potentially individuals, if as a result of a documented program | IRS-qualified public charities, DAFs, and private foundations (in most cases) | Public charities, private foundations and individuals (although a gift to an individual is not necessarily tax-deductible) |
| Time to establish | Immediately | Several weeks/months | Several weeks/months | Immediately |
| Typical minimum | $5,000-$10,000 | $1 million+ | $1 million+ | Any |
| Costs to establish | X | ✓ | ✓ | X |
| Ongoing costs | ✓ | ✓ | ✓ | X |
| Growth potential | ✓ | ✓ | ✓ | X |
| Donations of non-cash assets | ✓ | ✓ | ✓ | X |
| Income tax deduction (as a % of Adjusted Gross Income) | 60% for cash 30% for appreciated assets |
30% for cash 20% for appreciated assets |
Depends on the type of trust and type of charity being supported | 60% when donating to a public charity 30% when donating to a private foundation |
| Tax on investment income | X | ✓ 1.39% of net investment income |
✓ X Depends on nature of trust |
N/A |
| Required annual distributions | X Typically no, but can vary by DAF program sponsor |
✓ At least 5% of net asset value |
✓ Typically at least 5-6% of market value |
N/A |
| Required to file its own tax return | X | ✓ | ✓ | N/A |
| Give anonymously | ✓ | X | ✓ | X |
| Ability to name successors | ✓ | ✓ | ✓ | X |
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To learn more about your charitable giving options, contact your financial advisor.
