COMPARISON
OF PRIVATE FOUNDATIONS,
COMMUNITY FOUNDATIONS AND SUPPORTING ORGANIZATIONS
| Attributes | Private Foundations | Community
Foundations |
Supporting
|
| Amount Deductible | |||
|
Publicly
Traded Securities |
Fair Market Value (FMV) | Fair Market Value (FMV) | Fair Market Value (FMV) |
| Other Appreciated Property | Limited to Cost Basis | Fair Market Value (FMV) | Fair Market Value (FMV) |
| Percentage Limitations | |||
| Cash Gifts | 30% of AGI | 50% of AGI | 50% of AGI |
| Appreciated Property | 20% of AGI | 30% of AGI | 30% of AGI |
| Other Considerations | |||
| Excise
Tax on Investment Income |
2% | None | None |
| Excess
Business Holdings Limitations |
Yes | No | No |
| Donor Control | Legal | Advisory | Minority
of Board Members |
| Anonymity | No
- Must file detailed returns on grants, investments, fees, salaries, etc. |
Yes
- Donors and grants can be private. Foundation can serve as a buffer between donor and grantseekers. |
Limited |
| 5%
Distribution Requirement |
Yes | No | No |
| Incorporation,
Tax Exemption, Audit/Tax Returns, Directors/Officers Insurance, Grants Management, Investment Management, Compliance |
Responsible
for all functions; foundations less than $3 million have expenses ranging from 3-5% decreasing as the assets grow larger |
Community Foundation handles all administration for a tiered fee based on fund size. Fees range from .65-1.25% (Investment fees are addressed separately.) |
Attached
to Community Foundation or remains independent; fees are generally between private foundations and community foundations |
| Primary Advantages | Control Independence Family Identity |
Deductibility Nonprofit Knowledge Flexibility Permanence Freedom from Care Economy |
Deductibility Separate Board Family Identity More Apparent Control |
