Comparing Four Approaches to Giving

The Foundation for Enhancing Communities offers compelling advantages over other charitable options. Discover the benefits of partnering with us.

Items to Consider TFEC Donor Advised Fund Private Foundation Commercial Gift Fund
(i.e. – Fidelity)
Direct Gift to a Nonprofit Organization
Start-up Considerations:
Costs None Several thousand dollars for legal and accounting expenses and filing fees None N/A
Time Frame Immediate Several months Immediate N/A
Minimum Contribution $10,000 over 5 years Not cost-effective unless $8 million or more Usually $10,000 to $25,000 for individuals N/A
Investment and Tax Considerations:
Investment Donor may choose from TFEC’s investment options Donor appointed board controls investments Donor may choose from among firm’s investment pools N/A
Tax Status Covered under TFEC’s public nonprofit federally tax exempt status Must apply to IRS for private foundation federal tax-exempt status Covered under nonprofit federally tax exempt status of corporate entity’s charitable subsidiary Covered under federally tax exempt nonprofit organization’s public charity status
Income Tax Dedications for Gifts of:
Cash Up to 50% of federal adjusted gross income Up to 30% of federal adjusted gross income Up to 50% of federal adjusted gross income Up to 50% of federal adjusted gross income
Publicly Traded Securities Fair market value up to 30% of federal adjusted gross income Fair market value up to 20% of federal adjusted gross income Fair market value up to 30% of federal adjusted gross income Fair market value up to 30% of federal adjusted gross income
Real Estate & Closely Held Securities Fair market value up to 30% of federal adjusted gross income Deductible at cost basis Fair market value up to 30% of federal adjusted gross income; usually not accepted Fair market value up to 30% of federal adjusted gross income; usually not accepted
Grantmaking:
Grantmaking Involvement and Control Donor recommends grants to qualified nonprofit organizations, subject to approval by TFEC’s Board of Directors Donor appointed board controls grantmaking decisions Donor recommends grants to qualified nonprofit organizations, subject to approval by trustees of the gift fund Donor makes gifts based on their own research and intuition; gifts are made directly to the nonprofit organization and control is limited to initial gift decision
Grantmaking
Expertise
Staff can help identify and assess grantees, provide input on community needs and nonprofit organizations Must arrange and support its own grantmaking and monitoring structure Most do not offer personalized advice on grantee selection N/A
Distribution Requirements None At least 5% of net asset value annually; 30% penalty tax on undistributed amount Varies; some require a minimum of 5% of the fund’s net assets on a five-year rolling basis N/A
Annual Administrative Requirements:
Fees 0.40% for Investment Management and 1.70% for Administration for a total of 2.10% (prorated monthly) Grantmaking,
administrative and
investment support
must be covered
Based on size of fund,
usually starting at 1% of assets and declining for larger funds
N/A
Taxes None Federal excise tax of 2% of net investment income, including net capital gains None N/A
Reporting Requirements None Annual federal income tax return, including detailed financial schedules None N/A
Administrative Requirement None Staff salaries and office space to run daily foundation operations None N/A
Privacy Donors may remain anonymous Donors may remain anonymous, but IRS 990 form lists officers, directors and trustees Donors may remain anonymous Dependent on nonprofit organization’s gift giving policies

TFEC provides a streamlined and personalized approach to giving. We offer a variety of tools to help you achieve your charitable goals. Major options for giving entail varying costs and benefits. TFEC or your professional advisor can help you review options for custom giving solutions based on your timing preferences, your giving focus, and other variables. You can make a gift of cash, stocks, bonds, real estate or other assets to TFEC. Most charitable gifts qualify for maximum tax advantage under federal law. Most states do not have a gift tax, but do have an inheritance or estate tax.

For more information on how to start achieving your charitable goals, please contact Janice R. Black, President and CEO at jblack@tfec.org or Jennifer Doyle, Director of Development & Community Investment, at jdoyle@tfec.org.