Comparison Chart
Donor Advised Funds Vs. Private Foundations
|
| |
Private Foundation |
Donor Advised Funds |
| Maximum Tax Benefits |
No |
YES |
| AGI Tax Deduction Limitation—Cash |
30% |
50% |
| AGI Tax Deduction Limitation— Actively Traded Securities |
20% |
30% |
| Gifts of Real Estate |
Cost Basis Deduction |
Fair Market Value Deduction |
| Gifts of Closely-held Securities |
Cost Basis Deduction |
Fair Market Value Deduction |
| Privacy/Confidentiality |
No, Public Accessible Disclosure of IRS Form 990PF* |
YES Confidentiality Maintained |
| Excise Taxes on Sale of Highly Appreciated Gifts to Entity |
Yes |
NO |
| Annual Excise Tax Payments |
1-2% of Net Income & Net Realized Gains |
NONE |
| Customized/Personalized Investment Program for Each Charitable Entity or Fund |
Yes |
YES |
| Ease of Establishing Charitable Entity |
Complex |
SIMPLE |
| Annual Minimum Distribution Requirement |
5% |
NONE |
*Annual IRS Form 990 and 990PF disclosures include the following: Asset size, investment earnings/detail of investments held, board members and addresses, detail of grants distributed and detail of contributions made. |
