Why a Community Foundation?
A fund at the Foundation is less costly to establish than a private foundation, in terms of both time and money. Our staff can help your clients establish a fund in a matter of days and then handles all the administrative details and reporting. Establishing a private foundation can take months or longer, and the private foundation then becomes responsible for substantial legal, accounting, and operational matters.
A private foundation is typically created and controlled by a single donor, family, or corporation. In contrast, a community foundation derives its support from a broad spectrum of donors in the community and is controlled by a board of community leaders. Because it is publicly supported and controlled, a fund at the community foundation enjoys advantages over private foundations including:
- higher deduction limits for donors.
- no excise taxes.
- no minimum payout requirement.
- no separate tax reporting on individual funds.
For more information on the advantages of a Donor-advised fund, click here
For a detailed comparison between a Donor-advised fund and a private foundation, click here.