|
Attributes
|
Outright Gift To Charity
|
Private Foundation
|
Community Foundation of Northeast Alabama
|
Supporting Organization with CFNEA
|
|
Amount Deductible
|
|
Publicly Traded
Securities
|
Fair Market Value
|
Fair Market Value
|
Fair Market Value
|
Fair Market Value
|
|
Other Appreciated
Property
|
Fair Market Value
|
Limited to Cost Basis
|
Fair Market Value
|
Fair Market Value
|
|
Annual Percentage Limitations
|
|
Cash Gifts
|
50% of AGI*
|
30% of AGI*
|
50% of AGI*
|
50% of AGI*
|
|
Appreciated Property
|
30% of AGI*
|
20% of AGI*
|
30% of AGI*
|
30% of AGI*
|
|
Other Considerations
|
|
Investment Growth
|
None
|
Appreciation is Tax-Free
|
Appreciation is Tax-Free
|
Appreciation is Tax-Free
|
|
Self Dealing Rules
|
N/A
|
Strict Regulation
|
Foundation Oversight
|
Foundation Oversight
|
|
Excise on Tax on
Investment Income
|
N/A
|
2%
|
None
|
None
|
|
Excess Business
Holdings Limitations
|
N/A
|
Yes
|
Yes
|
Yes
|
|
Donor Control
|
None after Gift is Completed
|
Legal
|
Advisory
|
Minority of Board
Members
|
|
Anonymity
|
Yes
|
No-Must file detailed
IRS 990 PF detailing grants,
investments, fees,
salaries, etc.
|
Yes-Donors and grants
can be private.
Foundation can serve as a buffer between donor and grantseekers
|
Limited
|
|
5% Distribution
Requirement
|
No
|
Yes
|
No
|
No
|
|
Incorporation and Administrative Functions:
Audit/Tax Returns,
Directors/Officers
Insurance, Grant & Investment Management,
and Compliance Issues
|
N/A
|
Responsible for all
functions and expenses
|
No cost to establish a fund,
handles all administration
and grant functions for an
annual fee based on fund type ranging from .5 to 1.5%
|
Part of the Community Foundation but retains much of its independent;
fees are based on services provided by CFCC
|
|
|
|
Primary
Disadvantages
|
Timing-gifts must be made in the same year as
income to maximize
tax benefits
|
Expenses for administration
and compliance, annual
payout requirements, limitation of allowable grantees, migration of heirs and successors
|
Grants are advisory vs.
ownership control
|
Control is shared with the Community Foundation
|
|
|
|
Primary
Advantages
|
Control where gifts are made and how they are recognized
|
Control, independence,
family identity, employment
of children, probate court decides disputes
|
Deductibility, knowledge of regional needs, ability to make high impact grants, reduced fees, permanence,
professional administration, and not
subject to probate court
|
Deductibility, separate
board, family identity, permanence, and
not subject to
probate court
|
|
*Adjusted Gross Income
|
