If you’re looking for a highly personal way of giving without all the guidelines, responsibilities and costs that come along with establishing and maintaining a private foundation, then a Donor Advised Fund at the Pasadena Community Foundation is the right charitable vehicle for you.
ITEMS TO CONSIDER | PRIVATE FOUNDATION | COMMUNITY FOUNDATION DONOR ADVISED FUND |
Setup Procedure | Must incorporate and apply for IRS tax-exempt approval | Simple agreement, can be set up in as little as one day |
Initial Costs | Setup fees | No setup fees |
Ongoing Costs | Liability insurance, direct administrative costs | Pooled administration, low costs |
Tax Benefits Cash Publicly traded securities Closely held stock/real estate | Less advantageous tax deductions Up to 30% of adjusted gross income Fair market value up to 20% of adjusted gross income Deductible at cost basis up to 20% of adjusted gross income | Greater overall tax deductions Up to 60% of adjusted gross income Fair market value up to 30% of adjusted gross income Fair market value up to 30% of adjusted gross income |
Excise Taxes | 1.39% of net investment income annually. | None |
Reporting Requirements | Annual 990-PF must be filed by foundation or hire staff | None required of the donor, community foundation handles all reporting |
Grantmaking | Must research and identify agencies/programs to fund | Community foundation staff educates donors regarding worthy agencies and programs: provides information on qualified giving opportunities |
Grant Management | Must ensure all recipients are qualified 501(c)(3) organizations | Community foundation verifies organization’s status, plus, donors can access the foundation’s strategic grantmaking services |
Distribution Requirements | 5% annual distribution required | None |
Privacy | Tax return is public record | Donor can choose to be anonymous |
Contact: Liz Algermissen, Director of Development (626) 796-2097 x105 or ealgemissen@pasadenacf.org
PCF is a 501c3 public charity Tax ID# 20-0253310