| Community Foundation | Private Foundation | |
|---|---|---|
| Minimum Assets | $10,000 | $1M+ to be fiscally efficient |
| Start-up | No cost to establish | Requires legal expenses & IRS 1023 application fees |
| Cost & Administration | 1% on assetsNo annual excise taxesNo annual audit of tax filings | Annual excise payments of 1-2% of net income & net realized gainsIRS form 990 filed annuallyAnnual audit or review |
| Governance | Donor recommends grants from the fundFoundation Board has final approval of all grants | Independent corporation with its own Board of Trustees or administration by a trust department for an additional feeSubject to IRS regulations* |
| Tax Benefits | Cash gifts: 50% of AGICapital gain property: 30% of AGIAll capital gain property deductible at current value5 year carry-over availableNo tax on investment income | Cash gifts: 30% of AGICapital gain property: 20% of AGIPublicly traded securities deductible at current valuePrivately held stock & other assets deductible at basis5 year carry-over available2% excise tax on investment income |
| Visibility | Fund name/donor acknowledged in grant lettersFund listed in GMCF Annual ReportFund listed on GMCF websiteAssistance with public grant announcements, if desired | Issues own grant guidelines and required annual reports |
| Anonymity | Total anonymity and confidentiality if requested | No IRS form 990PF is required and publicly available |
| Grant Making | No required annual distributionFoundation staff is available to help identify and assess grantees, provide input on community needs and verify nonprofit statusGrants checks normally issued in 2-3 daysOption to distribute grants from income and principal | Annual 5% minimum distributionBoard is responsible for all grant making and monitoringRestrictions on scholarship and research grantsRestrictions on “self-dealing” |
| Investment | GMCF portfolio, or upon request and approval of the Foundation, an approved outside manager | Investment vehicles overseen by BoardSubject to Uniform Management of Institutional Funds ActInvestment management fees paid from private foundation assets |
*IRS regulations include but are not limited to restrictions on holding interests in business enterprises, prohibition against grants to support lobbying and expenditure responsibility procedures for grants to organizations that are not public charities. As a “public charity,” the Greater Manhattan Community Foundation operates under different rules and its administration monitors all compliance issues.