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PHILANTHROPY TOP 5

    Most Popular Causes 
  1. Religion/Faith-Based
  2. Health/Health Care 
  3. Education
  4. Human Services
  5. Art, Culture & Humanities 

    Source: Giving USA 2005

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As a donor, you have a variety of options to pursue your charitable giving. The following compares the major differences between donor advised funds, support organizations, and private foundations. Depending on your interests and goals, this chart can assist you in determining the most appropriate charitable giving vehicle.

Donor Advised Funds Supporting Organizations Private Foundations
Start-Up Costs: Little or none (often covered by parent organization). Can be established immediately. Legal fees and other start-up costs can be substantial. Can take anywhere between three weeks to three months to create. Legal fees and other start-up costs can be substantial. Typically takes a few months to create.
Tax Deduction Limits for Gifts of Cash*: 50% of adjusted gross income. 50% of adjusted gross income. 30% of adjusted gross income.
Tax Deduction Limits for Gifts of Stock or Real Property*: 30% of adjusted gross income. 30% of adjusted gross income. 20% of adjusted gross income.
Ongoing Administrative and Management Fees: Varies with parent organization and level of services; typically less than SOs or PFs. Varies with choice of SO board, and level of services required (typically less than a private foundation, depending on size of SO). Varies with choice of board, and level of services required (typically 2.5% to 4% per year).
Excise Taxes: None. None. Excise tax of 1% to 2% of net investment income annually.
Valuation of Gifts: Fair market value. Fair market value. Fair market value for publicly traded stock, cost basis for all other gifts, including gifts of closely held stock or real property.
Control of Grants and Assets: Donor may recommend grants and investment, but the parent organization makes all final decisions. Donor may recommend grants and investments, but the parent organization has significant input in all final decisions. Donor family has complete control of all grantmaking and investments decisions, subject to self-dealing rules.
Required Payout: None. None, but must demonstrate ongoing support for named public charities or causes. Must expend 5% of net assets value annually, regardless of how much the assets earn.
Privacy: Names of individual donors can be kept confidential if desired. Grants can be made anonymously. Must file detailed and public tax returns on grants, investment fees, trustee names, staff salaries, etc. Must file detailed and public tax returns on grants, investment fees, trustee names, staff salaries, etc.
Governance and Succession: Donor may name advisors to recommend grants and investments. Donors may also name successors to the account, and ensure a continuing legacy. Opportunities for board selection, and bringing in the next generation. Majority of board must at all times be independent, non-family trustees typically appointed by named public charity. Opportunities for board selection, training and bringing in the next generation are greater. No restrictions regarding who serves on the board.
Perpetuity: DAFs can exist in perpetuity. DAFs revert to the parent organization after the original donors or the succeeding generation passes away if no successors are named. Supporting organization can exist in perpetuity. Foundations can exist in perpetuity.

* Any unused deductions may be carried forward up to 5 additional years after the year in which the original contribution is made.