The right vehicle for your client's goals
A fund at the Community Foundation offers the flexibility of a private foundation without the cost and administration, plus local knowledge a national gift fund cannot match.
Giving options side by side
The following is a general comparison, not tax or legal advice. Your client's situation and current tax law will help determine the best fit.
| Community Foundation fund | Private foundation | Commercial gift fund | |
|---|---|---|---|
| Startup time and cost | Simple agreement, often one meeting | Legal setup and ongoing administration | Online setup |
| Tax status | Public charity | Private foundation | Public charity |
| Deduction limits | Higher public charity limits | Lower private foundation limits | Higher public charity limits |
| Excise tax on investment income | None | Yes | None |
| Annual payout requirement | None | Yes, generally 5% of assets | Varies by sponsor |
| Public disclosure of grants | Can remain private | Reported on Form 990-PF | Can remain private |
| Personal advisor who knows the region | Yes | Self-managed or hired | Generally national call centers |
| Local nonprofit knowledge and vetting | Yes, full review before every grant | Self-managed | Basic eligibility checks |
| Fund types beyond donor advised | Designated, scholarship, field of interest and more | Grantmaking as designed | Generally donor advised only |
| Complex gifts (real estate, closely held stock) | Yes | Yes, with limits on deductions | Varies by sponsor |
| Legacy carried out in perpetuity | Yes | If the family maintains it | Varies by sponsor |
Common questions from advisors
Ready to review fund options with a client? Our fund summary covers donor advised, designated, agency, scholarship, and field of interest options.
Connect With An Expert
We’re here to help you make an impact. Let’s connect and explore the possibilities.