Compare Your Planned Giving Alternatives
A donor advised fund is a flexible and tax-efficient way to give, whether you use it as your primary giving vehicle or as a complement to a private foundation, charitable trust, or supporting organization.
The chart below compares the key benefits of a charitable gift fund with a private foundation. Our Private Foundation versus Donor-Advised Fund Self-Assessment Survey can help you to determine which charitable vehicles make the most sense given your needs.
|Private Foundation||Donor-advised fund|
|Asset minimums||Generally recommended only for those with millions of dollars in charitable assets||$5,000|
|Startup costs||May be substantial
- legal documentation, tax filings, other
|Ongoing Annual Expenses||May be substantial||Comparatively low|
|Privacy||Public disclosure of contributions and grants in annual tax filings||Transactions can be private|
|Tax deduction limits for cash contributions||30% of adjusted gross income (AGI)||50% of AGI|
|Tax deduction limits for securities contributions||20% of AGI||30% of AGI|
|Administration||Required record-keeping, asset management||Managed by Schwab Charitable|
|Reporting||Required annual state and federal tax returns||None|
|Taxes||Excise taxes, up to 2% of annual investment income||None|
|Annual distribution requirements||5% distribution required annually||None1|
|Professional asset management options||Yes||Yes|