| Comparison of Community and Private Foundations |
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|
Community Foundation |
Private Foundation |
| Tax treatment of cash gifts |
Deductible up to 50% of Adjusted Gross Income (AGI)
|
Private Foundation |
| |
| Tax treatment of gifts of appreciated publicly traded securities |
Full market value deduction up to 30% of AGI
|
Cost basis |
| |
| Excise taxes |
No Excise Taxes
|
Annual of 1 -2 % net investment income |
| |
| Required payout |
No required payout |
5% of asset value annually,even if the Foundation's investments don't earn 5%
|
| |
| Incorporation and tax preparation |
Automatically covered by community foundation |
Must apply for both |
| |
| Privacy |
Donors can be kept private. Community Foundation can serve as a buffer between donor and grant seekers |
Required to file detailed tax returns. These are public records and are compiled in grant seeker directories |
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| Investment, accounting, audit and tax returns |
Foundation handles all investments and accounting. Foundation files annual tax returns and an annual independent audit. |
Trustees must perform, contract of hire staff for these services |
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| General Administration |
Community Foundation handles all |
Trustee must perform |
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| Grant Administration |
Community Foundation can identify investigate, make payments and monitor |
Trustee must perform |
