COMPARISON TABLE

Donor Advised Funds, Supporting Foundations & Private Foundations

 

 

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Donor Advised Funds

Supporting Foundations

Private Foundations


Creating the Fund and/or Foundation

Established as a component fund of JCF

Separate non-profit entity created with JCF assistance

Non-profit corporation or trust organized as a private foundation


Tax-Exempt Status

Shares public charity status of JCF and is separately identified on JCF’s books in an account the donor names

Shares public charity status of JCF but is separately incorporated

Must apply to IRS for private foundation tax-exempt status


Donor Involvement with Grants

Donor and other designated advisors recommend charitable distributions

Donor holds significant organizational influence and may appoint a minority of the board of directors

Donor retains complete control over investments and grant-making


Donor Involvement with Investments

Fund assets are invested by JCF and overseen by JCF investment committee

May invest in JCF investment pools or outside investments

Must research and secure own investment vehicles


Minimum Annual Distribution Requirement

No minimum annual distribution required

No minimum annual distribution required

Must distribute at least 5% of assets each year


Charitable Deduction (Cash)

Up to 50% of adjusted gross income (AGI) with a five-year carry-forward for unused deductions

Up to 50% of adjusted gross income (AGI) with a five-year carry-forward for unused deductions

Limited to up to 30% of adjusted gross income (AGI) with a five-year carry-forward for unused deductions


Charitable Deduction (Appreciated, Publicly-Traded Securities)

Contributions of long-term capital gain property are deductible at fair market value and subject to 30% of AGI ceiling with five-year carry-forward

Contributions of long-term capital gain property are deductible at fair market value and subject to 30% of AGI ceiling with five-year carry-forward

Deductibility of all property gifts is limited to 20% of AGI with a ceiling and a five-year carry-forward


Minimum Starting Balance

$10,000

$1,000,000

No minimum


Administration

All records kept by JCF

All records kept by JCF

Donor arranges for record keeping


Start-Up Costs

No cost to donor

Variable cost to donor

Substantial legal, accounting and tax qualification costs

Annual Fees

Asset-based fee structure (See “Guidelines” for JCF Donor Advised Funds for details)
Asset-based fee structure plus annual corporate filing, tax filing and accounting fees
Subject to annual legal and accounting fees

Annual Taxes

None

None

2% excise tax due on investment earnings

Annual Tax Filing and Returns

No separate filing; fund has total privacy
JCF files required federal and state filings that are available to the public
Donor arranges for required federal and state filings that are available to public