Why use a community foundation when one can set up a private foundation?
The IRS regulates private foundations more strictly than community foundations. Private foundations may be costly and time consuming to set up and to administer and will require financial auditing and record keeping. Tax deductions to private foundations may be more limited than to community foundations. Individuals may find that setting up a donor advised fund may meet their charitable needs just as well as the creation of a private foundation would. Setting up a donor advised fund may be more cost effective for the donor as well.
