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Philanthropic Alternatives at JCF
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Family Foundations/
Organizations
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| Creating the Foundation Vehicle |
Established as a component fund of the Foundation. |
Separate non-profit entity created with assistance from the Foundation. |
Nonprofit corporation or trust organized as a private foundation. |
| Tax Exempt Status |
Shares public charity status of the Foundation and is separately identified on the Foundation’s books in the donor’s name. |
Shares public charity status of the Foundation. |
Must apply for private foundation tax exempt status from IRS. |
| Donor Involvement |
Donor and other designees recommend charitable distributions. |
Donor holds significant organizational influence and may appoint minority of the board of directors. |
Donor retains complete control over investments and grantmaking. |
| Distributions/Grants |
Charitable distributions can be made to qualified recipients from Fund principal and income |
Charitable distributions based on Board of Directors’ approval to qualified organizations. |
Must make grants equal to minimum 5% of asset value. |
| Charitable Deduction – Cash |
Up to 50% of adjusted gross income with a five year carry-over. |
Same as Donor Advised Fund. |
Limited to 30% of adjusted gross income ceiling with a five year carry-over. |
| Charitable Deduction – Appreciated Property |
Gifts of appreciated property qualifying as long-term capital gain are deductible at fair market value subject to 30% of adjusted gross income ceiling with five year carry-over for unused deduction. |
Same as Donor Advised Fund. |
Deductibility of all property gifts are limited to 20% adjusted gross income ceiling with five year carry-over. |
| Investments |
Fund assets are professionally invested through the Foundation. |
May avail itself of professional investment services offered by the Foundation. |
Must research and secure own investment vehicles. |
| Minimum Balance |
$1,800 |
$500,000 to begin |
No minimum. |
| Administration |
All record keeping done by the Foundation. |
All record keeping done by the Foundation. |
Donor arranges for record keeping. |
| Start-up Costs |
No cost to donor. |
$5,000 plus direct costs for legal and accounting. |
Similar to corporate start-up requiring substantial legal, accounting and operational costs. |
| Annual Costs |
1.25% for the first $1 million; 1% for funds of $1-$4 million; 0.75% for funds of $4-$16 million; a sliding scale for larger funds |
1.25% for the first $1 million; 1% for funds of $1-$4 million; 0.75% for funds of $4-$16 million; a sliding scale for larger funds |
Subject to annual fees and administrative fees. |
| Annual Taxes |
None |
None |
Excise taxes increased under 2006 Pension Act; includes penalty for failure to distribute income - 30% of undistributed amount.
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| Annual Tax Filings & Returns |
No separate filing. Fund has total privacy. |
The Foundation files required IRS and State filings which are available to the public. |
Donor arranges for required IRS and State filings. |