The chart below summarizes key differences between
community foundations and private foundations.
Charitable Fund at OCF
|
Private Foundation |
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1. Organizational
Structure
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- Donors establish individually named funds
within the corporate structure of OCF
|
- Donor must establish a separate nonprofit
corporation and apply for federal tax exemption
|
- Donors can guide grant making activities of their funds
|
- Donor operates own grant program and manages contact with
the grant seeking community
|
- OCF files one federal and state tax report for all of
its funds
|
- Donor is responsible for investments, accounting, and
state and federal reporting
|
|
2. Tax deductions for Donors
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- Donor receives 100% fair market value charitable deduction
for gifts of publicly traded stock, closely-held stock,
real estate, and other long-term capital gain property
|
- Donors currently receive a fair market value charitable
deduction only for gifts of publicly traded stock. The deduction
for gifts of other appreciated property, such as real estate
or closely-held stock, is limited to the donor’s cost
basis
|
- Gifts of cash are deductible up to 50% of the donor’s
adjusted gross income with a five-year carryover for any
excess
|
- Gifts of cash are deductible up to 30% of the donor’s
adjusted gross income with a five-year carryover for any
excess
|
- The fair market value of gifts of appreciated securities
or real estate are deductible up to 30% of the donor’s
adjusted gross income with a five-year carryover for any
excess
|
- Gifts of appreciated property are deductible up to 20%
of the donor’s adjusted gross income with a five-year
carryover for any excess.
|
|
3. Federal Tax
|
- OCF is exempt from all federal and state taxes
|
- Subject to federal tax of up to 2% annually on invested
income
|
|
4. Pay-out requirement
|
- No IRS requirement that any amount be paid out annually
in grants
|
- IRS requires an annual grant pay-out of 5% of assets
|
|
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