Community Foundation vs. Private Foundation

Community Foundation Private Foundation
Getting Started

  • 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.
  • 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.
Administration
  • 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.
  • Various costs for administration, insurance, accounting and audit.
  • Must obtain knowledge of community needs.
  • Requires research for managing
    investment vehicles.
Tax benefits

  • 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.
  • 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.
Donor control
  • Donor may make recommendations regarding distributions.
  • Donors may remain anonymous.
  • Donor retains control over investments and distributions.
  • Donor information is open to the public for up to three years.

This information should not be considered legal or financial advice. Please consult with your financial or tax advisor or your attorney.

 

It's Our Mission

The Greater Lynchburg Community Foundation works to solve our community’s greatest challenges by providing grants and scholarships, and by helping individuals, families, and organizations create their charitable legacy.

Get In Touch

  •   The Greater Lynchburg Community Foundation
      1100 Commerce Street
    Lynchburg, VA 24504
  •   434.845.6500
  •   434.845.6530 fax

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