Private Foundation vs. PCF Donor Advised Fund

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.

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.
Reporting Requirements
Annual 990-PF must be filed by foundation or hire staff
None required of the donor, community foundation handles all reporting
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
Tax return is public record
Donor can choose to be anonymous

Contact: Jennifer DeVoll at (626) 796-2097 ext. 101 or

PCF is a 501c3 public charity Tax ID# 20-0253310

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