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Comparisons
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Creating the Foundation
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Established at CCCF by a simple agreement |
Nonprofit corporation or trust created with
assistance from CCCF |
Nonprofit corporation or trust organized as a
private foundation |
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Tax Exempt Status
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Shares the public charity tax exempt status of CCCF, as a
"component" of CCCF |
Must apply for exempt status from the IRS as a public
charity |
Must apply for private foundation tax exempt status from
the IRS |
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Start-up Costs
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No cost to donor |
Similar to a corporate start up in the form of legal fees |
Similar to a corporate startup requiring substantial
legal, accounting, and operational startup costs |
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Recommended Size
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$50,000 or more |
$1 million or more |
Substantial assets required |
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Charitable Deductions for Cash Gifts
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Tax deduction of up to 50% of adjusted gross income (AGI) |
Tax deduction of up to 50% of adjusted gross income (AGI) |
Tax deduction of up to 30% of adjusted gross income (AGI) |
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Charitable Deductions for Appreciated Property
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Tax deduction available for full fair market value of
marketable securities and other property.
Tax deduction available up to 30% of AGI. |
Tax deduction available for full fair market value of
marketable securities and other property.
Tax deduction available up to 30% of AGI. |
Tax deduction may be taken for fair market value of
marketable securities up to 20% of AGI. Tax deduction for other property
is limited to the lower of cost or fair market value. |
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Donor Control
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Donor makes
advisory grant recommendations; final review and approval rest with CCCF’s board of directors |
Donor retains significant control over investments and
grant making |
Donor retains complete control over investments and grant
making, subject to IRS requirements |
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Self-Dealing Rules
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Private foundation self-dealing rules do not apply |
Private foundation self-dealing rules do not apply |
Strict regulations prohibit most transactions between a
private foundation and its donors (including related persons or
organizations) |
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Payout Requirements
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Do not apply |
Do not apply |
Must pay out for charitable purposes at least 5% of its
asset value annually, regardless of its income |
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Administrative Concerns
(personnel, facility, gift, and grant managing)
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Services provided by CCCF |
Affiliation with CCCF provides access to existing
services |
Must establish and/or obtain these services |
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Annual Administrative Costs
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Minimal |
Shared by CCCF and therefore kept at a minimum |
Administration can be costly |
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Annual Taxes
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None |
None |
Subject to an excise tax of up to 2% of net investment
income and realized capital gains. |
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Annual Tax Filings and Returns
(990 Report)
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Not required (reported as part of CCCF’s
annual reporting) |
Must be prepared and filed by CCCF, or CCCF can oversee preparation and filing |
Must be filed by the private foundation with
required reporting schedules |
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Investments
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Fund assets are professionally invested through CCCF’s
investment program |
May avail itself of investment services offered by CCCF or manage itself |
Must research, secure, carefully monitor, and pay the
cost of its own investment vehicles |
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Fiduciary Responsibility
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CCCF fulfills the associated fiduciary responsibilities |
The board of the supporting organization has fiduciary
responsibilities |
The private foundation board has fiduciary responsibility |
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Liability and Risk Insurance
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Provided by CCCF |
Provided by CCCF |
Must be purchased by the private foundation |
