Donor Advised Fund vs Private Foundation
compare your options
For those who want to make the most of their personal or organizational philanthropy, private foundations are certainly one option – but not the only option. Oftentimes start-up and administrative costs, lack of privacy, and limited tax deductibility lead donors to create donor advised funds with us instead. A fund at the Southeast Virginia Community Foundation can usually achieve most, if not all of the same charitable objectives, with far greater convenience and far less expense, while being equally effective. We can even educate you about leading community issues, introduce you to philanthropic and community leaders, and help your family navigate complex issues like multigenerational giving. Compare your options below:
| SEVACF Donor Advised Fund | Private Foundation | |
|---|---|---|
| Establishment | ||
| To Establish: | Fund is covered under SEVACF’s tax exempt status. A fund agreement can be finalized in less than a day. | Must set up a corporation or trust, and apply for tax exempt status using IRS Form 1023. Can take up to 6 months or more. |
| Recommended Size: | $5,000 minimum | $10 million recommended minimum |
| Income Tax Deduction Limit | ||
| Cash Gifts, Percentage of Adjusted Gross Income (AGI): | 50% | 30% |
| Appreciated Property: | 30% | 20% |
| Tax Deduction Carry-over Available: | Yes | Yes |
| Amount Deductible (subject to percentage limitations) | ||
| Appreciated Publicly-traded Stock: | Fair Market Value (FMV) | FMV |
| Other Appreciated Property (long-term): | FMV | Cost Basis |
| Administration & Fees | ||
| Minimum Payout: | No | Yes. As much as 5% of average asset value each year. |
| General Administration: | SEVACF provides all administrative and financial management. | Trustees must perform or provide for services. |
| Separate Tax Return: | No | Yes |
| Accounting: | No | Yes |
| Record-Keeping: | No | Yes |
| Federal Excise Tax Imposed: | No | Yes |
| Charitable Giving Services | ||
| Create a Family Giving Plan: | Yes | Fee-based |
| Help with Grant-making: | Yes. SEVACF provides all grant administration and monitoring, plus can provide information about area nonprofits, community issues, etc. | Fee-based |
| Advice About Community Issues: | Yes | Fee-based |
The purpose of this website is to provide general gift, estate, and financial planning information. The Southeast Virginia Community Foundation is not engaged in providing legal or tax counsel. For advice or assistance in specific cases or whether to make certain a contemplated gift fits well into your overall circumstances and planning, the services of an attorney or other professional advisor should be obtained.
Establishment
To Establish:
SEVACF DONOR ADVISED FUND
Fund is covered under SEVACF’s tax exempt status. A fund agreement can be finalized in less than a day.
PRIVATE FOUNDATION
Must set up a corporation or trust, and apply for tax exempt status using IRS Form 1023. Can take up to 6 months or more.
Recommended Size:
SEVACF DONOR ADVISED FUND
$5,000 minimum
PRIVATE FOUNDATION
$10 million recommended minimum
Income Tax Deduction Limit
Cash Gifts, Percentage of Adjusted Gross Income (AGI):
SEVACF DONOR ADVISED FUND
50%
PRIVATE FOUNDATION
30%
Amount Deductible
Cash Gifts, Percentage of Adjusted Gross Income (AGI):
SEVACF DONOR ADVISED FUND
$5,000 minimum
PRIVATE FOUNDATION
$10 million recommended minimum
Administration & Fees
Minimum Payout:
SEVACF DONOR ADVISED FUND
No
PRIVATE FOUNDATION
Yes. As much as 5% of average asset value each year.
General Administration:
SEVACF DONOR ADVISED FUND
SEVACF provides all administrative and financial management.
PRIVATE FOUNDATION
Trustees must perform or provide for services.
Separate Tax Return:
SEVACF DONOR ADVISED FUND
No
PRIVATE FOUNDATION
Yes
Accounting:
SEVACF DONOR ADVISED FUND
No
PRIVATE FOUNDATION
Yes
Record-Keeping:
SEVACF DONOR ADVISED FUND
No
PRIVATE FOUNDATION
Yes
Federal Excise Tax Imposed:
SEVACF DONOR ADVISED FUND
No
PRIVATE FOUNDATION
Yes
Charitable Giving Services
Create a Family Giving Plan:
SEVACF DONOR ADVISED FUND
Yes
PRIVATE FOUNDATION
Fee-based
Help with Grant-making:
SEVACF DONOR ADVISED FUND
Yes. SEVACF provides all grant administration and monitoring, plus can provide information about area non-profits, community issues, etc.
PRIVATE FOUNDATION
Fee-based
Advice About Community Issues:
SEVACF DONOR ADVISED FUND
Yes
PRIVATE FOUNDATION
Fee-based
