Community Foundation Advantage
When considering the best avenue for your philanthropic giving, some believe that a private foundation provides the only option for long-term involvement with assets set aside for charitable purposes. In reality, a named fund or supporting organization at the Community Foundation offers numerous advantages, providing real ways for you to stay engaged in giving and avoids many of the hassles and costs of private foundation management.
CFONCW = Community Foundation of North Central Wisconsin
| Private Foundation | CFONCW Community Impact or Designated Funds |
CFONCW Donor Advised Fund |
CFONCW Supporting Organization |
|
|---|---|---|---|---|
| Administration | Detailed annual filing with IRS | CFONCW carries out all record-keeping and accounting | ||
| Grantmaking Expertise | For larger foundations, a professional staff | CFONCW staff assistance to review and monitor proposals | ||
| Control | Trustees have complete control of distributions and responsiblity for asset management | CFONCW Board of Directors responsible for grantmaking to carry out donor’s intent and asset management | Donor advisors recommend grant recipients to CFONCW Board for approval; Board responsible for managing assets | Own Board of Directors responsible for grantmaking and asset management |
| Cost | Legal and accounting fees, insurance, office space, staff and operational costs | No cost to establish; investment and management fees | Cost to establish; investment and management fees | |
| Legal Identity | Separate nonprofit entity | (Donor’s choice of name) Fund of CFONCW | Donor’s choice of name; separate nonprofit entity affiliated with CFONCW | |
| Tax Status | Private Foundation | Public Charity | ||
| Taxation of Investment Income | 2% Anually | None | ||
| Payout Requirement | Annual grants must equal 5% of corpus | None | ||
| Deductability of Gifts | Deductible up to 30% of adjusted gross income; gifts of appreciated property deductible at fair market value (up to 20% of AGI) | Deductible up to 50% of adjusted gross income; gifts of appreciated property deductible at fair market value (up to 30% of AGI) | ||
Let’s Start a Conversation.
Our professional staff is here to help you find a philanthropic solution that’s right for you and guide you through the process of getting started.
Or call Tim at (715) 845-9555
