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