Donor Advised Funds The power of giving...simplified
  "We make a living by what we get, but we make a life by what we give."
- Winston Churchill
 
 
 



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.

private foundationUnfortunately, 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.

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