A Century of Service. Giving for Good.
Professional Advisors

Questions?

We welcome the opportunity to meet with you in person or discuss your options via email or phone. Contact Christine Burghoff, 314-880-4967, for more information.christine-burghoff

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CHARITABLE GIVING VEHICLES COMPARISON

 

 

Donor Advised Fund at the
St.
Louis Community Foundation

Commercial
Donor Advised Fund

at financial institution

Community Foundation
Supporting Organization
(Type I)
Private Foundation

Definitions

 

Local, independent nonprofit resource that serves donors who want to establish and direct a charitable initiative while minimizing the costs associated with setting up and maintaining a foundation.

 

 

Donated funds are (typically) held at a non-local financial institution. Donors make grantmaking recommendations to the fund.Combines the flexibility of a donor advised fund with the formal board structure and defined charitable mission of a foundation. Appropriate for individual and corporate philanthropic initiatives.A nonprofit organization administered by a board of directors and funded by an individual, family, or company, that makes grants to nonprofit recipients.
Personal Local ServiceYesNoYesVaries
Knowledge of Local NonprofitsYesNoYesVaries

Start Up Considerations:

Costs

NoneNoneCommunity Foundation covers most costsSeveral thousand dollars for legal, accounting and filing expenses
TimeframeImmediateImmediateSeveral MonthsSeveral months

Minimum Contribution

$10,000Typically, $5,000-$25,000$5 million recommendedNone, but smaller private foundations may not be cost effective

Distribution Requirements

NoneVaries. Some require a minimum of 5% of fund’s net assets on a five-year rolling averageNone

Must distribute at least 5%of net asset value annually.

Subject to 30% penalty tax on amounts not distributed

Annual Fees

Investment management expenses range from 0.1% to 0.75%.

 

Support fees:
Range on a sliding scale, based on level of assets, from 1.0% to 0.25% ($500 min.)

Investment management fees usually range from 0.1% to 1.25%, based on size of fund.

Administrative fees:
Usually starts at 0.6% of assets with a declining rate for larger funds

 

Blended rate based on level of assets, plus actual investment management expenses, audit fees, and tax return preparation feesGrantmaking, administrative, and investment support are secured and financed independently

Income Tax Deductions (Percent of adjusted gross income):

Cash Gifts

Up to 50%Up to 50%Up to 50%Up to 30%

Publicly-traded securities (at fair market value)

Up to 30%Up to 30%Up to 30%Up to 20%

Real estate, closely-held securities (at fair market value, unless noted)

Up to 30%Up to 30%Up to 30%Up to 20%, at cost basis

Other Tax Considerations:

IRS Reporting

None

None

Annual tax returns and audits prepared and filed by Community Foundation

Annual tax return and detailed financial schedule required

Taxes

None

None

None

Excise tax. Typically 1% to 2% of net investment income, including net capital gains

Tax Status

Covered under Community Foundation’s public charity status

Covered under nonprofit statue of corporate entity’s charitable subsidiary

Entitled to public charity status based on its relationship with Community Foundation

Applies to IRS for private foundation tax-exempt status

 

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St. Louis Community Foundation

#2 Oak Knoll Park, St. Louis, MO 63105
tel 314-588-8200, fax 314-588-8088
info@stlouisgives.org