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DONOR ADVISED FUNDS |
SUPPORTING ORGANIZATIONS |
PRIVATE FOUNDATIONS |
Creation of Fund |
Established at The Putnam County Community Foundation at no cost to donor |
Not-for-profit corporation created with assistance from The Putnam County Community Foundation as an affiliate organization |
Not-for-profit corporation or trust independently organized as a private foundation |
Tax-Exempt Status |
Shares Public Charity status of The Putnam County Community Foundation |
Shares Public Charity status of The Putnam County Community Foundation |
Must apply for private foundation tax exempt status from the IRS |
Minimum Size |
None |
$ 1 million |
Substantial assets required |
Charitable Deductions of Cash Gifts |
Tax deduction of up to 50% of adjusted gross income |
Tax deduction of up to 50% of adjusted gross income |
Tax deduction up to 30% of adjusted gross income |
Charitable Deductions of Appreciated Property |
Tax deduction available for full fair market value, up to 30% of adjusted gross income |
Tax deduction available for full fair market value, up to 30% of adjusted gross income |
Tax deduction available for full fair market value, up to 20% of adjusted gross income |
Donor Control |
Donor holds advisory powers over grant recommendations, with final approval by the Board of The Putnam County Community Foundation |
Donor holds significant organizational influence and may appoint minority of the board of directors |
Donor forms independent corporation with own Board of Trustees. Retains complete control over investments and grant making, subject to IRS requirements. |
Annual Payout Requirements |
None |
None |
Grants must equal 5% of asset value annually |
Administration |
All administration, i.e. investment, legal, financial, accounting, audit, check writing, due diligence, etc. provided by The Putnam County Community Foundation |
Administrative services can be provided by The Putnam County Community Foundation |
Must establish infrastructure and and/or obtain administrative services, i.e. investment, legal, financial, accounting, audit, check writing, due diligence, etc. |
Annual Costs |
Minimal |
Can be shared by The Putnam County Community Foundation and therefore kept at a minimum |
Include legal and accountant fees, insurance and possibly office space, staff and miscellaneous expenses |
Annual Taxes |
None |
None |
Subject to excise tax of up to 2% of net investment gain including net capital gains |
Annual Tax Filings and Returns |
Not required |
Can be prepared and filed by The Putnam County Community Foundation |
Must be filed by the private foundation with required supporting schedules |
Investments |
Fund assets are professionally invested through The Putnam County Community Foundation |
May avail itself of professional investment services offered by The Putnam County Community Foundation |
Must research and secure own investment vehicles. Investments are subject to the Uniform Institutional Investment of Funds Act (UMIFA) |
Visibility |
Optional anonymity.
Donor may receive visibility as desired, i.e. Donor and fund name acknowledged in grant letters, annual reports, etc. |
Optional anonymity.
Donor may receive visibility as desired, i.e. Donor and fund name acknowledged in grant letters, annual reports, etc. |
Anonymity is not possible. Required to issue detailed annual reports and 990 statements which are publicly distributed on the internet. |
