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Donor Advised Fund at the Community Foundation of Broward |
Commercial Donor Advised Fund
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Private Foundation
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Grantmaking & Investments
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Your control over grantmaking
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You recommend grants to qualified nonprofit groups.
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You recommend grants to qualified nonprofit groups.
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You appoint a board that controls grantmaking.
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Grantmaking Advice and Follow-up
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Every day our programs department is assessing community needs and the effectiveness of nonprofit organizations seeking to meet those needs. We provide educational opportunities and site visits.
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Varies. Most do not offer personalized advice.
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Foundation must arrange and support its own grantmaking and monitoring structure.
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Grants to Individuals
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Scholarships to individuals are allowed.
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Typically not permitted.
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Scholarships to individuals are allowed – additional oversight is required.
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Investment Management
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You can place your Fund in a highly diversified pool that consistently outperforms standard indexes.
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You chose from the firm's investment pools.
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You appoint a board or hire staff that controls investments.
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Tax Information
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Tax Status
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IRS 501(c)(3) tax exempt public foundation.
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Nonprofit status of corporate entity's charitable subsidiary.
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You apply to the IRS for private foundation tax exempt status.
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Income Tax Deductions for Gifts of Cash
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Up to 50% of adjusted gross income.
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Up to 50% of adjusted gross income.
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Up to 30% of adjusted gross income.
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Income Tax Deductions for Gifts of Publicly Traded Securities
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Fair market value up to 30% of adjusted gross income.
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Fair market value up to 30% of adjusted gross income.
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Fair market value up to 20% of adjusted gross income.
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Income Tax Deductions for Gifts of Real Estate & Closely Held Securities
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Fair market value up to 30% of adjusted gross income.
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Fair market value up to 30% of adjusted gross income. Real estate and closely held securities are not generally accepted.
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Deductible at cost basis.
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Distribution Requirements
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None. |
Varies. Some require a minimum of 5% of the fund's net assets on a five-year rolling basis.
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At least 5% of net asset value annually. Can be distributed to a Community Foundation of Broward Fund.
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Start Up Considerations
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Costs
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None.
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None.
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Several thousand dollars for legal and accounting expenses and filing fees.
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Time-Frame
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Immediate.
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Immediate.
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Several months.
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Minimum Contribution
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$25,000
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Varies, usually $10,000 - $25,000 for individuals.
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None, but smaller private foundations may not be cost-effective.
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Annual Administrative Requirements
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| Fees |
1.5% of assets
<$2M
1.25% of assets
>$2M<$5M
1% of assets
>$5M<$10M
0.75% of assets
>$10M
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Based on size of fund, usually starting at 1% of assets and declining for larger funds.
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Grantmaking, administrative, and investment support are staffed and financed independently.
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Taxes
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None.
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None.
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Excise tax of up to 2% of net investment income, including net capital gains.
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Reporting
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None.
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None.
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Annual tax return, including detailed financial schedules, filed by foundation.
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Other
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Privacy
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Donors may remain anonymous.
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Donors may remain anonymous.
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Donors may remain anonymous, but IRS 990PF form lists officers, directors, and trustees.
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