| |
Donor Advised Fund at the Community Foundation of Broward |
Commercial Donor Advised Fund
|
Private Foundation
|
| Grantmaking & Investments |
Flexible grantmaking
|
You recommend grants to qualified nonprofit groups. |
You recommend grants to qualified nonprofit groups. |
You appoint a board that controls grantmaking. |
Grantmaking Advice and Follow-up
|
Every day our grants department is assessing community needs and the effectiveness of nonprofit organizations seeking to meet those needs. We provide educational opportunities and site visits. |
Varies. Most do not offer personalized advice. |
Foundation must arrange and support its own grantmaking and monitoring structure. |
Grants to Individuals
|
Scholarships to individuals are allowed. |
Typically not permitted. |
Scholarships to individuals are allowed – additional oversight is required. |
Investment Management
|
You can place your Fund in a highly diversified pool that consistently outperforms standard indexes. |
You chose from the firm's investment pools. |
You appoint a board or hire staff that controls investments. |
| Tax Information |
Tax Status
|
IRS 501(c)(3) tax exempt public foundation. |
Nonprofit status of corporate entity's charitable subsidiary. |
You apply to the IRS for private foundation tax exempt status. |
Income Tax Deductions for Gifts of Cash
|
Up to 50% of adjusted gross income. |
Up to 50% of adjusted gross income. |
Up to 30% of adjusted gross income. |
Income Tax Deductions for Gifts of Publicly Traded Securities
|
Fair market value up to 30% of adjusted gross income. |
Fair market value up to 30% of adjusted gross income. |
Fair market value up to 20% of adjusted gross income. |
Income Tax Deductions for Gifts of Real Estate & Closely Held Securities
|
Fair market value up to 30% of adjusted gross income. |
Fair market value up to 30% of adjusted gross income. Real estate and closely held securities are not generally accepted. |
Deductible at cost basis. |
Distribution Requirements
|
None. |
Varies. Some require a minimum of 5% of the fund's net assets on a five-year rolling basis. |
At least 5% of net asset value annually. Can be distributed to a Community Foundation of Broward Fund. |
| Start Up Considerations |
Costs
|
None. |
None. |
Several thousand dollars for legal and accounting expenses and filing fees. |
Time-Frame
|
Immediate. |
Immediate. |
Several months. |
Minimum Contribution
|
$25,000 |
Varies, usually $10,000 - $25,000 for individuals. |
None, but smaller private foundations may not be cost-effective. |
| Annual Administrative Requirements |
| Fees |
1.5% of assets
<$2M
1.25% of assets
>$2M<$5M
1% of assets
>$5M<$10M
0.75% of assets
>$10M |
Based on size of fund, usually starting at 1% of assets and declining for larger funds. |
Grantmaking, administrative, and investment support are staffed and financed independently. |
Taxes
|
None. |
None. |
Excise tax of up to 2% of net investment income, including net capital gains. |
Reporting
|
None. |
None. |
Annual tax return, including detailed financial schedules, filed by foundation. |
| Other |
| Privacy |
Donors may remain anonymous. |
Donors may remain anonymous. |
Donors may remain anonymous, but IRS 990PF form lists officers, directors, and trustees. |