Donor Advised vs. Private Foundation

 Donor Advised Fund at TCF

 Private Foundation
 Minimum Assets
  • $10,000 
  • $1M+ to be fiscally efficient 
  •  $300 one-time start-up fee
  •  Requires legal expenses & IRS 1023 application fees
 Cost & Administration
  • 1% on assets < %500,000 (minimum: $300/ a year)
  • 0.5% on assets between $500,00 and $3 million
  • 0.35% on assets >$3 millions
  • No annual excise taxes
  • No annual audit of tax filings 
  • Annual excise payments of 1-2% of net income & net realized gains
  • IRS form 990 annually 
  •  Donor recommends grants from the fund
  • Foundation Board has final approval of all grants
  • Independent corporation with its own Board of Trustees or administration by a trust department for an additional fee
  • Subject to IRS regulations
 Tax Benefits
  •  Cash gifts: 50% of AGI
  • Capital gain property:30% of AGI
  • All capital gain property deductible at current value
  • 5-year carry-over avaiilable
  • No tax on investment income
  • Cash gifts: 30% of AGI
  • Capital gain property: 20% of AGI
  • Publicly traded securities deductible at current value 
  • Privately held stock and other assets deductible at bases 
  • 5-year carry-over available
  • 1-2% excise tax levied on investment
  •  Fund name/donor acknowledged in grant letters
  • Fund listed in TCF annual repot and website
  • Assistance with public grant announcements, if desired
  •  Issues own grant guidelines and required annual reports
  •  Total anonymity and confidentiality is an option at the donors request
  •  No-IRS form 990PF is required and publicly available
  •  No required annual distribution
  • Foundation staff is available to help identify and assess grantees, provide input on community needs and verify nonprofit status
  • Grant checks issued weekly
  • Option to distribute grants from income and principal
  •  Annual 5% minimum distribution
  • Board is responsible for all grant making and monitoring 
  • Restrictions on scholarship and research grants
  • Restriction on "self-dealing"
  •  TCF portfolio, or upon request and approval of the Foundation, an approved outside manager
  •  Investment vehicles overseen by Board 
  • Subject to Uniform Management of Institutional Funds Act
  • Investment management fees paid from private foundation assets