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Foundation Board member and ceramic artist, Randy Chitto, creating a turtle storyteller. Photo by Kate Russell |
Your clients have a variety of options to consider as they explore giving through our community foundation. These include determining the type of fund or planned gift that best meets their philanthropic goals and the type of gifts to make to reach their philanthropic and financial goals. For information on the various ways to give to the Foundation, click here. Look here for information on the types of funds available or how to start a fund. Many of your clients are likely to consider creating their own family foundation. There are many advantages and benefits of establishing a fund with the Santa Fe Community Foundation vs. creating a private family foundation, including:
Tax deductions for cash? - Private foundation is 30% of AGI
- Donor advised fund is 50% of AGI
Tax deductions for appreciated securities? - Up to 20% of AGI for private foundation
- Up to 30% of AGI for donor advised fund
Tax deduction for real estate? - Only cost basis for private foundation
- Fair market value for donor advised fund
Excise Tax? - 2% for private foundation
- None for donor advised fund
Distribution rules? - 5% for private foundation
- None for donor advised fund
Tax return to file? - Yes, the complex 990-PF for private foundation
- None for donor advised fund
Administrative paperwork? - Can be complex for private foundation
- Minimal or none for donor advised fund
Length of time to establish? - 3-9 months for private foundation
- 1 day for donor advised fund
Startup costs? - $3-10,000 or higher for private foundation
- None for donor advised fund
Disclosure to the public? - Yes for private foundation
- Donor advised fund can remain anonymous
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