Simplicity
one contribution can address a number of different needs and/or charitable organizations
Tax benefits
contributions qualify for maximum deductions for income, gift, and estate purposes
Professional management
the Foundation’s professional staff and voluntary board provide careful administration and oversight
Perpetuity
the funds will serve the community now and in the future because only the earnings are spent
Security
all assets are held in perpetuity with careful stewardship of all gifts
Flexibility
if the intended use of a gift should ever become obsolete, the Foundation will strive to follow your wishes while allowing for changes that occur in every viable community
Public accountability
annual independent auditing, public disclosure of all grant activities, and careful selection of board members assure accountability and transparency in the public interest.
Permanence
your fund is reinvesting every single year in a greater community
Family involvement
your family members can remain engaged in local philanthropy in the community in which they were raised even if they live outside of the La Crosse area
Cost effectiveness
community foundations are the most cost effective way to support your community.
Private Foundation Comparison
|
Private Foundation |
LCF Community Impact or Designated Funds |
LCF Donor Advised Fund |
LCF Supporting Organization |
Administration |
Detail annual filing with IRS |
LCF carries out all record-keeping and accounting |
LCF carries out all record-keeping and accounting |
LCF carries out all record-keeping and accounting |
Grantmaking Expertise |
For larger foundations, a professional staff |
LCF staff assistance to review and monitor proposals |
LCF staff assistance to review and monitor proposals |
LCF staff assistance to review and monitor proposals |
Control |
Trustees have complete control of distributions and responsibility for asset management |
LCF Board of Directors responsible for grantmaking to carry out donor's intent and asset management |
Donor advisors recommend grant recipients to LCF Board for approval; Board responsible for managing assets |
Own Board of Directors responsible for grantmaking and asset management |
Cost |
Legal and accounting fees, insurance, office space, staff and operational costs |
No cost to establish; investment and management fees |
No cost to establish; investment and management fees |
Cost to establish; investment and management fees |
Legal Identity |
Separate nonprofit entity |
(Donor's choice of name) Fund of LCF |
(Donor's choice of name) Fund of LCF |
Donor's choice of name; separate nonprofit entity affiliated with LCF |
Tax Status |
Private Foundation |
Public Charity |
Public Charity |
Public Charity |
Taxation of Investment Income |
2% Annually |
None |
None |
None |
Payout Requirement |
Annual grants must equal 5% of corpus |
None |
None |
None |
Deductibility of Gifts |
Deductible up to 30% of adjusted gross income; gifts of appreciated property deductible at fair market value (up to 20% of AGI) |
Deductible up to 50% of adjusted gross income; gifts of appreciated property deductible at fair market value (up to 30% of AGI) |
Deductible up to 50% of adjusted gross income; gifts of appreciated property deductible at fair market value (up to 30% of AGI) |
Deductible up to 50% of adjusted gross income; gifts of appreciated property deductible at fair market value (up to 30% of AGI) |
