Compare Your Planned Giving Alternatives
A Charitable Gift Account 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 Account with a private foundation, and explains how the account can be used either as an alternative to a private foundation or as a complement to a private foundation.
| Features |
Private Foundation |
Charitable Gift Account |
| Startup costs |
May be substantial |
None |
| Asset minimums |
Generally recommended only for $20 million or more in charitable assets |
$5,000 |
| Expenses |
May be substantial |
Comparatively low
|
| 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 |
We manage for you |
| 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 |
None |
| Professional asset management options |
Yes |
Yes |
| Privacy |
Public disclosure of contributions and grants in annual tax filings |
Transactions can be private |
- As an alternative to a private foundation
- A Charitable Gift Account offers several significant advantages over private foundations, particularly for donors with less than $20 million to give.
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 Costs: With no start-up costs, low operating expenses, and a $5,000 account minimum, the Charitable Gift Account offers a tax-advantaged way to give for a fraction of the cost of a private foundation.- Tax Treatment: A Charitable Gift Account allows for a higher cap on deductibility limitations than a private foundation, which can mean larger tax deductions for you. Moreover, in contrast to a foundation, no additional tax forms are required.
- Administration: The Fund handles the account administration and record-keeping for the account, which allows you to focus on your charitable giving goals.
- Privacy: Whereas grants from a private foundation must be publicly disclosed, grants made from a Charitable Gift Account are flexible: they can recognize your generosity, or allow you to remain anonymous.
- As a complement to a private foundation
- Under certain circumstances, even donors with private foundations may find that a Charitable Gift Account can be a strategic complement to an existing gift plan. Setting up a Charitable Gift Account to operate alongside your private foundation can offer you certain benefits:
-
- Preferred Tax Treatment: Gifts of real property made to private foundations during life are deductible at cost basis, while the same gifts into a donor-advised fund are deductible at fair market value. You may want to maintain a Charitable Gift Account solely for the proceeds of donations of real property.
- Flexible Granting: A Charitable Gift Account enables you to recommend grants to organizations for dollar amounts or to causes that might not fit perfectly within your foundation's guidelines. We offer a streamlined grant-recommendation process with a minimum of $250 per grant.
- Anonymity: Even if you generally prefer for your foundation to be recognized for grants you make, there may be some grants that you do not wish to be publicly disclosed. A Charitable Gift Account offers you the flexibility to remain anonymous for grants made at your recommendation.
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