| |
Simplify your Private Foundation using Donor Advised Funds
Donor Advised Funds are far easier to set up than a private foundation.
There are no excise taxes and yearly federal or state tax forms
to file, and no minimum payout requirements. An individual faces
none of the administrative and financial burdens of a private foundation.
 Unfortunately,
many people have gone through the time and effort to establish a
private foundation and found they can't simply focus on what they
were looking to do in the first place, donate to charities. They
are forced to deal with all the extra work there'd just assume not
have to be involved with.
The good news is, a Private Foundation can be transferred to a
Donor Advised Fund. This accomplishes the original goal of many
Private Foundation Donors, you can now focus on donations without
the added headaches. You can even keep the same name as your existing
Foundation.
We call it "Charitable Giving...SIMPLIFIED.
If you are a Private Foundation Trustee
or Donor, go ahead and click here and complete the online form
and we will send you a FREE copy of our detailed Donor Advised Fund
investors guide. This is information every Private Foundation Donor
and Trustee needs to know about.
The following chart illustrates the numerous advantages Donor Advised
Funds have over Private Foundations:
| Donor Advised Funds |
Private Foundation |
| No donor start up costs |
Start up costs are substantial |
Higher income tax deductibility
- Cash can be fully deducted at a rate of 50% of AGI
- Publicly traded securities, Restricted Stock and Real
Estate can be fully deducted at a rate of 30% of AGI
- Gift and estate tax deduction of 100%
|
Lower Income tax deductibility
- Cash can be fully deducted at a rate of 30% of AGI
- Publicly traded securities, Restricted Stock and Real
Estate can be fully deducted at a rate of 20% of AGI
- Gift and estate tax deduction of 100%
|
| No federal excise tax |
2% federal excise tax imposed on earnings |
| No annual tax reporting required |
Federal and state tax returns required to be completed and
filed annually |
| Recommend grants to charities, churches and schools with one
simple form |
Full responsibility to manage assets, qualify charities for
ability to accept grants, administer the grants and extensive
record keeping |
| Reasonable expenses deducted automatically |
Total Annual expenses are often substantial |
| All aspects of the account can be done anonymously if desired,
no public records. |
All activates and tax returns are public record |
| Grants to charity can be done on your time frame with no annual
grants required. |
Required to distribute 5% of assets annually |
| Few regulatory requirement and those are handled by the Fund.
|
Regulatory requirements are extensive |
As you can see, the numerous benefits Donor Advised Funds have
over Private Foundations are numerous. If you have any additional
questions or would like a free consultation with a Donor Advised
Fund specialist, feel free to contact us toll free at 800-944-7730.
Were happy to help you explore Donor Advised Funds and decided if
they're an appropriate option for you and your goals.
The information contained on this site is for educational purposes
only. It is not intended to be professional tax or legal advice;
consult the appropriate professional regarding your specific situations.
Copyright © 2002 DonorAdvisedFunds.com
|
|
