Advantages of Community Foundations Vs. Private Foundations
In addition to your charities, Community Foundations can benefit you as a donor.
Private Foundations
Deduct up to 30% Adjusted Gross Income (AGI) for cash gifts.
Community Foundations
Deduct up to 50% of AGI for cash gifts.
Private Foundations
Deduction is limited to tax basis of appreciated property, other than qualified appreciated stock, up to 20% of AGI.
Community Foundations
Deduction allowed for full fair market value of appreciated property, up to 30% of AGI.
Private Foundations
Pay 2% excise tax on net investment income, unless certain payout requirements are met.
Community Foundations
Exempt
Private Foundations
Pay out at least 5% of asset value, whether or not the Foundation earns such an amount.
Community Foundations
Exempt
Private Foundations
Must avoid a long list of "self-dealing" transactions.
Community Foundations
Exempt
Private Foundations
Tax advantages of Charitable Bail-out through gift of closely held business interest not available.
Community Foundations
Significant tax advantages of Charitable Bail-out through gifts of closely held business interests are available.
Private Foundations
Donor may not enjoy lifetime income and significant tax advantages of a gift annuity donation to a private foundation.
Community Foundations
Donor may enjoy lifetime income and significant tax advantages of a gift annuity donation to the Community Foundation.
Private Foundations
Donor responsible for investment management, accounting costs, grant administration, and tax reporting.
Community Foundations
Community Foundation handles all administration of funds.
Private Foundations
Must file annual report of investments, grants, trustee fees, staff salaries, and other payments.
Community Foundations
Community Foundation publishes annual report and maintains anonymity of donor if desired.