What are the pros and cons of each of these vehicles? Which is right for your needs and desired impact?
Learn more about our Donor Advised Funds >>
Feature | CCF DAF | Private Foundation |
| Set-Up Cost | None | Legal & Accounting |
| Ease of Set-Up | A simple form & can grant as soon as funds received | Can take months, including set-up with IRS and state |
| Amount to Open | $5,000 | $500,000+ |
| Valuation of Gifts for Charitable Deduction | Fair market value | Fair market value for publicly traded stock. Cost basis for all other gifts including gifts of real estate |
| Tax Deduction as a Percent of Adjusted Gross Income | Cash: 60% Appreciated assets: 30% | Cash: 30% Appreciated Assets: 20% |
| Excise Tax | None | 2%, typically |
| Anonymity | Possible, if desired | Typically not possible |
| Set-Up Costs | None | Legal & Accounting |
| Admin Fees | 1% plus investments | Costs of lawyers, accountants, staff, etc. can be significant |
| Fillings Required for Donor | None | Annual Return |
| Succession at Death | Varies | Board names successors |
| Investment Options | Choice of Foundation investment pools and some opportunity for increased donor direction | Wide range of securities and the Foundation exercises control over investments |
| Run Programs | A DAF only issues grants to 501(c)(3) charitable orgs | A foundation may run programs and pay for related expenses (within IRS guidelines) |
| Grant Recipients | 501(c)(3) organizations only | Can be individuals and grant making decisions fully controlled by the Foundation |
| Annual Minimum Distributions | None | 5% of assets |
Has your family foundation become too cumbersome/costly to manage?
Some families who have a private foundation have seen, over time, that the cost (both of time and money) is more than they want to spend. It is possible to transition a private foundation into a DAF – a much simpler tool for grantmaking. Contact the Foundation today with questions.