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Community Foundation |
Private Foundation |
Getting Started
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- The Community Foundation has been around since 1972.
- Setting up a fund is easy and inexpensive.
- There are no initial tax filing requirements.
- There are no necessary corporate documents.
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- A foundation must be started from the ground up.
- Can be costly and time consuming.
- Requires filing with the IRS to receive tax-exempt status.
- Must establish a separate corporation or trust.
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Administration
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- Costs are shared by all funds.
- Knowledgeable and professional staff.
- Board who are informed of community needs.
- Investments are managed by a responsible committee and investment managers.
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- Various costs for administration, insurance, accounting and audit.
- Must obtain knowledge of community needs.
- Requires research for managing
investment vehicles.
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Tax benefits
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- Cash gifts are deductible up to 50% of adjusted gross income.
- Full market value of appreciated assets is deductible up to 30% of adjusted gross income.
- Tax-exempt income.
- The Community Foundation handles filing Form 990.
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- Cash gifts are limited to 30% of adjusted gross income.
- Full market value is deductible limited to 20% of AGI or tax cost basis is deductible limited to 50% of AGI.
- Tax-exempt income but may be subject to excise tax of up to 2% of net investment gainsMust prepare Form 990-PF.
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| Donor control |
- Donor may make recommendations regarding distributions.
- Donors may remain anonymous.
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- Donor retains control over investments and distributions.
- Donor information is open to the public for up to three years.
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