Compare Your Options
Achieve Your Objectives
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.
|
|
SEVACF Donor Advised Fund |
Private Foundation |
|---|---|---|
Establishment |
||
To Establish: |
SEVACF Donor Advised FundFund is covered under SEVACF’s tax exempt status. A fund agreement can be finalized in less than a day.
|
Private FoundationMust 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 Fund50%
|
Private Foundation30%
|
Appreciated Property: |
SEVACF Donor Advised Fund30%
|
Private Foundation20%
|
Tax Deduction Carry-over Available: |
SEVACF Donor Advised FundYES
|
Private FoundationYES
|
Amount Deductible (subject to percentage limitations) |
||
Appreciated Publicly-traded Stock: |
SEVACF Donor Advised FundFair Market Value (FMV)
|
Private FoundationFMV
|
Other Appreciated Property (long-term): |
SEVACF Donor Advised FundFMV
|
Private FoundationCost Basis
|
Administration & Fees |
||
Minimum Payout: |
SEVACF Donor Advised FundNo
|
Private FoundationYes. As much as 5% of average asset value each year.
|
General Administration: |
SEVACF Donor Advised FundSEVACF provides all administrative and financial management.
|
Private FoundationTrustees must perform or provide for services.
|
Separate Tax Return: |
SEVACF Donor Advised FundNo
|
Private FoundationYes
|
Accounting: |
SEVACF Donor Advised FundNo
|
Private FoundationYes
|
Record-Keeping: |
SEVACF Donor Advised FundNo
|
Private FoundationYes
|
Federal Excise Tax Imposed: |
SEVACF Donor Advised FundNo
|
Private FoundationYes
|
Charitable Giving Services |
||
Create a Family Giving Plan: |
SEVACF Donor Advised FundYes
|
Private FoundationFee-based
|
Help with Grant-making: |
SEVACF Donor Advised FundYes. SEVACF provides all grant administration and monitoring, plus can provide information about area nonprofits, community issues, etc.
|
Private FoundationFee-based
|
Advice About Community Issues: |
SEVACF Donor Advised FundYes
|
Private FoundationFee-based
|
Considerations
You can use your donor advised fund to recommend grants to any eligible nonprofit organizations in the United States. SEVACF can help you identify and qualify nonprofit organizations that are eligible to receive grants.
What are the Minimums and Fees?
- A donor advised fund may be created with an initial donation of $5,000 or more. Grants can be made over time in keeping with your wishes. There is, however, a minimum grant distribution of $100.
- Administrative fees are assessed quarterly. Currently, our fees are 1.5% with a minimum of $100.
- Gifts to a Donor Advised Fund can be made during a person’s lifetime or by bequest or other planned gift.
- To establish a Donor Advised Fund, contact our professional program staff at 757-397-5424. We’ll work with you to create a customized charitable fund that carries out your unique charitable goals.
Interested in a SEVACF fund?
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.