Private Foundations vs. Donor Advised Funds

Compare a private foundation with a donor advised fund.

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Donor Advised Fund Private Foundation
Start-up ease & costs Simple process with minimal or no cost Complex process with legal fees and IRS application expenses
Asset minimums None Usually $1,000,000+
Grant making Donor Advisor(s) recommends grants to YouthBridge Grant Committee. Foundation board exercises control over grants
Privacy Donors may remain anonymous Annual filing of IRS Form 990-PF is a public record of grants, assets, trustee names, compensation, etc.
Minimum annual distribution requirements None 5%
Annual IRS tax return None IRS Form 990-PF
Annual excise tax None Up to 2% on net income and net realized capital gain
Maximum Tax Benefits* Yes No
Cash gifts 50% of AGI 30% of AGI
Gifts of long-term capital assets Fair market valueup to 30% of AGI or cost basis up to 50% of AGI Fair market value for publicly traded stock, cost basis for other capital assets; deductible up to 20% of AGI
Gifts of short-term capital assets Generally cost basis up to 50% of AGI Cost basis, up to 30% of AGI
Fund accounting, audit and Form 990 Included under YouthBridge corporate structure Trustees perform, contract or hire staff for these services
Grant administration Level I grant support included in administrative fee Trustees perform, contract or hire staff for these services
Ongoing expense Lower Higher
* Summary of tax benefits are for individual taxpayers, not corporations.

Information provided is general and educational in nature. It is not intended to be, and should not be construed as, legal or tax advice. YouthBridge Community Foundation does not provide legal or tax advice. Content provided relates to taxation at the federal level only. . Rules and regulations regarding tax deductions for charitable giving vary at the state level, and laws of a specific state or laws relevant to a particular situation may affect the applicability, accuracy, or completeness of the information provided. . Consult an attorney or tax advisor regarding your specific legal or tax situation.