Options for giving
This chart provides a summary comparison of the major types of charitable options. We encourage you to discuss details with your legal and financial advisors.
| Make a direct gift to charity | Establish a private foundation | Contribute to a community foundation | Develop a corporate giving program or foundation | Establish a supporting organization | Join a giving circle | Establish a donor-advised fund | |
| Donor can control asset investment | No | Yes | Limited1 | Yes | Limited | Limited2 | Limited1 |
| Donor can control giving priorities | Yes3 | Yes | Limited4 | Yes | Limited | Limited2 | Limited4 |
| How likely to be perpetual | Low5 | High | High | Not Applicable | High | Low | High |
| Donor may control who serves on board | No6 | Yes | No6 | Yes | Limited | Yes | No6 |
| Requires donor time and effort, plus expense of staff and management | No | Yes | No8 | Yes | Yes | Yes7 | Limited13 |
| Minimum payout required |
No | Yes | No | Yes, if a Foundation | No | Yes | No |
| Must pay tax on investment income and realized capital gains | No | Yes(1-2%) | No | Yes11, if a Foundation | No | No | No |
| Tax deduction limitation for gifts of cash | 50%9 | 30%9 | 50%9 | 10% of pre-tax profits9 | 50%9 | 50%9 | 50%9 |
| Tax deduction limitation for gifts of stock or real property | 30%9 | 20%9,10 | 30%9 | 10% of pre-tax profits9 | 30%9 | 30%9 | 30%9 |
| Valuation of gifts of property other than publicly traded stock | Fair Market Value | Cost Basis | Fair Market Value | Cost Basis, if a Foundation | Fair Market Value | Not Applicable12 | Fair Market Value |
| Separate tax return required and open to public inspection | No | Yes | No | Yes11, if a Foundation | Yes | No | No |
Notes:
(1) In some cases the donor may recommend investment managers or investment vehicles subject to the
approval and control of the community foundation or investing institution.
(2) Legal structures of giving circles vary, resulting in different levels of donor control. Pooling resources
with others also limits direct personal control.
(3) Charity and donor can agree on how contribution is spent.
(4) A restricted gift can be confined to the stated purpose, but the donor relinquishes control of the
investments and its disposition. A donor-advised fund permits the donor to make recommendations
subject to the ultimate control of the community foundation or investing institution.
(5) Except when you create an endowment.
(6) Any citizen may be elected or appointed to the board of any public charity. The donor gift does not
guarantee such an outcome except in the case of supporting organizations.
(7) Giving circles vary in requirements for involvement and in management structure cost.
(8) Community foundations often assess a management or administrative fee.
(9) Percentage refers to the amount of adjusted gross income that may be deducted. Excess in any year's
donations can be carried forward for five years.
(10) Except for gifts of publicly traded stock, the deductible value of lifetime gifts of closely held stock of
real property is limited to tax basis, which is generally cost.
(11) Corporate foundations must pay the same excise tax as any private foundation.
(12) Giving circles typically accept donations of cash and stock only.
(13) Annual management fees can range from 1% to 2.5% of the fund's value.