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Giving Option Comparison

Community foundations, such as The San Diego Foundation, are tax-exempt charities organized as collections of individual funds and foundations. Although grants may be made outside of the region and even the country, the community foundation’s purpose is to support the long-term benefit of a geographical location. Unique among charitable organizations, community foundations are experts on both sides of the philanthropic exchange, providing premium services to individual funds and foundations while developing deep knowledge of local community needs.

Establishing a private or family foundation through The San Diego Foundation includes a number of benefits, including tax advantages, a lower level of administrative burden, an increased level of confidentiality about your foundation due to reporting requirements, and customized services and research to ensure your grant making has the highest impact possible. This chart provides a comparison of these benefits relative to other common options:

Comparisons	Donor Advised Fund	Supporting Organization	Private/Family Foundation
Starting the Foundation	Established at SDF	Nonprofit corporation created with assistance from TSDF	Nonprofit corporation or trust organized as a private foundation
Tax Exempt Status	Shares the public charity tax exempt status of SDF	Shares the public charity tax exempt status of SDF	Must apply for private foundation tax exempt status from the IRS
Start-up Costs	No cost to donor	Minimal costs through collaboration with SDF	Similar to corporate start-up requiring substantial legal, accounting and operational start-up costs
Charitable Deductions *Cash Gifts* *Appreciated Property*	Tax deduction of up to 50% of adjusted gross income Tax deduction available for full market valueTax deduction available up to 30% of adjusted gross income	Tax deduction of up to 50% of adjusted gross income Tax deduction available for full market valueTax deduction available up to 30% of adjusted gross income	Tax deduction is limited to 30% of adjusted gross income Tax deduction limited to donor's cost basis in some cases Tax deduction limited to 20% of adjusted gross income
Donor Control	Donor makes advisory grant recommendations-final decisions rest with SDF	Donor hold significant organizational influence and may appoint minority of the board of directors	Donor retains complete control over investments and grantmaking, subject to IRS requirements
Self-Dealing Rules	Private foundation self-dealing rules do not apply	Private foundation self-dealing rules do not apply	Strict regulations prohibit most transactions between a private foundation and its donors (including related persons or corporations)
Payout Requirements	Do not apply	Do not apply	Must Pay out annually for charitable purposes at least 5% of its asset value regardless of its annual income
Administrative Concerns (Personnel, facility, gift and grant management)	Services provided by SDF	Affiliation with SDF provides access to existing services	Must establish and/or obtain these services
Annual Costs	Minimal	Shared by SDF and therefore kept at a minimum	Administration can be costly
Annual Taxes	None	None	Generally income is tax exempt but subject to excise tax of up to 2% of net investment gain including net capital gains
Annual Tax Filings and Returns	Not required (reported as part of SDF's annual reporting)	Prepared and filed by SDF	Must be filed by private foundation with required supporting schedules
Investments	Fund assets are professionally invested through SDF	May avail itself of professional investment services offered by SDF	Must research and secure its own investment vehicles
Fiduciary Responsibility	SDF fulfills the associated fiduciary responsibilities	Administrative guidance provided by SDF	The private foundation board has full fiduciary responsibility