What you need to know:
Starting a private foundation can involve substantial start up costs and administrative expanses, such as the yearly filling of a Form 990-PF. But one of the most important differences is that Donor Advised Funds receive more favorable tax treatment than a private foundation.
Donor Advised Funds allow donors to take a federal income tax deduction up to 50% of adjusted gross income (AGI) for cash contributions and up to 30% of AGI for appreciated securities; versus 30% of AGI for cash contributions and 20% of AGI for appreciated securities for a private foundation.
Donor Advised Funds also offer the ability to recommend grants anonymously, if desired. It is also possible to convert a private foundation over to a donor advised fund to simplify on-going maintenance and record keeping.
How to start a fund:
A donor enters into an agreement with The Fund For Philanthropy. Our staff will assist you with the process. If you have additional questions please call Tony Suber at (404) 825-9529.
1. To create a fund, a donor makes an irrevocable contribution to the Fund, a public charity, and takes a tax deduction in the year they make the contribution.
2. The donor chooses a name for their Fund (name can include the word “Foundation”).
3. The donor can then recommend to the Fund a preferred investment option for their account.
4. The donor can begin recommending grants to charities at anytime. The number of grants issued per year is not limited.
Here are the forms you’ll need to open your account:
How can I still support the charities that I care about:
- Donate assets that make the most sense from a tax perspective and then support multiple charities from a single contribution to the fund using our Contribution Form.
- Recommend grants to any IRS-qualified public charity 501(c)3, or to recognized international charitable organizations.
- Recommend grants online, by fax or by mail using our Grant Request Form.
- Set up recurring grant recommendations (monthly, quarterly, semi-annually, or annually).
- The Fund prepares customized correspondence for grants from your account and issues the grants to the recommended charity. Grants can be made in the name of your fund, or made anonymously if necessary.
- Cash equivalents (by check or wire) and publicly traded securities (including restricted stock).
- Certain special assets (including real estate and illiquid assets) are accepted on a case-by-case basis.
- Privately-held stock in a company.
Please consult your tax advisor or call us before making your contribution.
The Fund for Philanthropy, Inc. (Tax ID# 80-0878355) is an IRS recognized 501(c)(3) tax exempt public charity as described in the Internal Revenue Code Sections 501(c)(3), 509(a)(1), and 170(b)(1)(A)(vi). IRS Tax Exemption Letter.
All money and property transferred to The Fund For Philanthropy shall be an irrevocable gift to the charity. The charity shall hold, manage, invest and reinvest the Fund, shall collect the income and shall pay and disburse the net income and principal therefore exclusively for general charitable uses and purposes, in accordance with the provisions specified in the Articles of Incorporation of the charity. The Articles of Incorporation have been adopted by the Board of Directors of the Charity, and their provisions, as they may be amended from time to time, are hereby incorporated by reference and conclusively assented to and adopted. The phrase “charitable uses and purposes” shall be defined as all of those activities, uses and purposes described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the “Code”).