This chart summarizes key differences between donor advised funds at Coastal Community Foundation and private foundations.

CCF Donor Advised Fund / Community Foundation
Private Foundation
Donor Control of Grantmaking and Investments Donor recommends grants to qualified nonprofit groups. . Donor appoints board, which controls investments and grantmaking.
Tax Status Covered under CCF’s public charity status.

 

Applies to IRS for private foundation tax-exempt status.
Income Tax Deductions for Gifts of: CCF Donor Advised Fund Private Foundation
Cash Up to 50% of adjusted gross income. Up to 30% of adjusted gross income.
Publicly Traded Securities Fair market value up to 30% of adjusted gross income. Fair market value up to 20% of adjusted gross income.
Real Estate & Closely Held Securities Fair market value up to 30% of adjusted gross income. Deductible at cost basis.
Grantmaking Advice and Follow-up Professional staff is available to help identify and assess grantees, provide input on community needs, and ensure recipients are qualified and effective.  Educational programs available. Foundation must arrange and support its own grantmaking and monitoring structure. 
Grants to Individuals Allowed under some circumstances (e.g., scholarships). Allowed under some circumstances (e.g., scholarships). Extra oversight required.
Distribution Requirements None. At least 5% of net asset value annually. Can be distributed to a fund at a community foundation.
Start-Up Considerations CCF Donor Advised Fund Private Foundation
Costs None. Several thousand dollars for legal and accounting expenses and filing fees.
Time-Frame Immediate. Several months.
Minimum Contribution $5,000

 

None, but smaller private foundations may not be cost-effective.
Annual Administrative Requirements CCF Donor Advised Fund Private Foundation
Fees  2% annually1.5% for funds over $1million Grantmaking, administrative, and investment support are staffed and financed independently.
Taxes None. Excise tax of up to 2% of net investment income, including net capital gains.
Reporting None. Annual tax return, including detailed financial schedules, filed by foundation.
Privacy Donors may remain anonymous. Donors may remain anonymous, but IRS 990PF form lists officers, directors, and trustees.