What is the difference between a private, family foundation and a fund with the Community Foundation?
Often, people establish a private, family foundation because they don’t know that in many cases working through a community foundation offers an easier alternative. In addition to the tax benefits, setting up a fund through the community foundation has an extremely short turn around time. Additionally, the staff of the foundation takes care of auditing and financial reporting requirements. Many community foundation donors are also pleased by the fact that community foundations have none of the annual payout requirements of family foundations. That means donors may take the time necessary to be thoughtful in recommending charities to receive grants from their fund. Community Foundations combine the tax advantages of a public charity with the lasting quality of a private foundation. Gifts of cash and ordinary income property to a community foundation are deductible up to 50% of adjusted gross income versus 30% for a private foundation. Gifts of appreciated property can be credited for 30
Setting up a fund at the community foundation offers an easier alternative to setting up a private foundation. In addition to the tax benefits, setting up a fund through the Eastern Carolina Community Foundation has an extremely short turn-around time. Additionally, the staff of the foundation takes care of auditing and financial reporting requirements. Many community foundation donors are also pleased by the fact that community foundations have none of the annual payout requirements of family foundations. That means donors may take the time necessary to be thoughtful in recommending charities to receive grants from their fund.
