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A supporting family foundation functions very much like
a private family foundation, but, because it is aligned with
The Jewish Community Foundation, donors get additional tax
considerations that would not be available with a private
foundation. And Donor-Advised Philanthropic Funds are an even
easier tax-advantaged way of enabling your enlightened philanthropy.
Grantmaking through a Donor Advised
Philanthropic Fund or a Supporting
Family Foundation instead of a private foundation can
make you a more effective philanthropist by:
- Transferring tax reporting and routine administration
functions to the Foundation
- Eliminating the excise tax on private foundation investment
income
- Offering higher deduction limits for charitable contributions
- Allowing you to remain anonymous when you wish to do
so
Here are some additional comparisons between supporting foundations,
donor-advised philanthropic funds and private foundations
to consider when choosing a vehicle for charitable grantmaking.
| Feature |
Donor Advised Philanthropic Fund |
Supporting Family Foundation |
Private Foundation |
| Opening Gift |
$5,000 |
$1 million |
$5 million (suggested) |
| Deductions for Cash Gifts |
50% of Adjusted Gross Income (AGI) |
50% of Adjusted Gross Income (AGI) |
30% of Adjusted Gross Income (AGI) |
| Deductions for Appreciated Assets |
30% of AGI |
30% of AGI |
20% of AGI |
| Start-Up Costs |
None |
$2,000-$3,000 (estimated) |
Substantial |
| Excise Taxes |
None required |
None |
Up to 2% on investment income |
| Tax Reporting |
None required |
The Jewish Community Foundation files tax
returns |
File federal and state returns |
| Administrative Responsibilities |
Request grants |
The Jewish Community Foundation provides administration |
Manage assets, keep records, select charities,
administer grants |
| Annual Expenses |
Around 1% or less (based on assets, grants) |
Around 1% or less (based on assets, grants) |
Substantial operating costs |
| Minimum Grants Required |
No fixed minimum |
No fixed minimum |
Approximately 5% of investment assets per year |
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