PRIVATE FOUNDATION OR COMMUNITY FOUNDATION?

Many donors believe that to achieve their charitable dream, their only option is to set up a private, nonprofit foundation. This couldn’t be more wrong.

Community foundations provide the same ability to “personalize” your charitable giving, while providing a safe and flexible vehicle to do so. And a community foundation eliminates all of the headaches that go along with setting up and managing a separate foundation.

Whether you want to give disadvantaged youth the opportunity to play sports, provide shelter for the homeless, address a specific healthcare initiative, inspire through the arts, or encourage kids to graduate, a community foundation can help you achieve your dream. Not only that, a community foundation remains involved with you as you grow in your charitable giving, providing support and expertise.

Advantages of creating a component fund within a community foundation

	Community Foundation	Private Foundation
Nonprofit Corporation	Provided	Must research & create
Funds required	$10,000	Possibly much more
Ease & cost to establish	Simple/no cost	Complex + costs
Admin. Fees	1-3%	Admin. Exp. + excise tax
Office staff	Provided	Need to provide
Audit/tax returns	Provided	Need to provide
Director’s liability	Provided	Need to provide
Investment oversight	Provided	Need to provide
Grant management	Provided	Need to provide
Min. annual distribution	None	5%
Public recognition	Provided	Need to provide
Business license	Provided	Need to provide
Access to community leaders	Provided	Need to establish
Knowledge about local needs	Provided	Need to do the research