Community Foundation vs. Private Foundation
| Tax Deductibility of Gift | Community Foundations | Private Foundations |
|---|---|---|
| Cash | 50% | 30% |
| Short-term capital gain property (cost) | 50% | 30% |
| Long-term capital gain property (fair market value) | 30% | 20% |
| Tangible personal property – related use (fair market value) | 30% | -0- |
| Depreciated tangible personal property (lower of cost or fair market value) | 30% | -0- |
In the chart shown above, the percentages refer to the maximum percentage of adjusted gross income allowed on the deductibility of charitable contributions in a taxable year.
ASPEN COMMUNITY FOUNDATION VS. PRIVATE FOUNDATION
| Aspen Community Foundation | Private/Family Foundation | |
|---|---|---|
| Time to Establish | One day | Requires legal filings |
| Excise Taxes | None | Up to 2% of investment income |
| Tax Filing | None | Annual returns |
| Investments | Professional oversight, lower fees, diversity of investments | Managed internally, must avoid investments that jeopardize charitable purposes |
| Grant Requests | Experienced staff | Must review and evaluate proposals |
| Annual Report | Through ACF | Must publish an annual report |
| Disclosure of Identity | Can provide anonymity | Disclosure required |
| Administrative Costs | Through ACF | Must bear all costs |
| Tax Deductibility – cash/appreciated assets | 50% deduction | 30% deduction |
| Payout Requirements | No legal requirements; foundation policy only | 5% of asset value annually |
Cycle of Giving | |
| Ways to Give | |
| Types of Funds | |
| Alternatives to Private Foundations | |
| Donor Profiles | |
| List of Funds |