Giving Options Summary Chart

Giving Options Summary Chart

The chart below provides a summary comparison of the major types of charitable giving options. The chart is meant to offer basic summary information, and is not a substitute for professional counsel — we encourage you to discuss details with your legal and financial advisors.

CHARITABLE GIVING OPTIONS:
	Direct Gift to Charity	Private Founda- tion	Community Foundation Fund	Corporate Giving Program, Foundation or Fund	Supporting Organiza- tion	Giving Circle
Donor can control investment of assets	No	Yes	No	Yes	Limited	Limited (1)
Donor can control giving priorities	Yes (2)	Yes	Limited (3)	Yes	Limited	Limited (1)
How likely to be perpetual	Low (4)	High	High	NA	High	Low
By virtue of gift, donor may control who serves on governing board	No (5)	Yes	No (5)	Yes	Limited	Yes
Requires donor time and effort, plus expense of staff and management	No	Yes	No (7)	Yes	Yes	Yes (6)
Minimum payout required	No	Yes	No	Yes, if a foundation	No	Yes
Must pay 1-2% tax on investment income and realized capital gains	No	Yes	No	Yes (10), if a foundation	No	No
Tax deduction limitation for gifts of cash (% of adjusted gross income that may be deducted)	50% (8)	30% (8)	50% (8)	10% of pre-tax profits (8)	50% (8)	50% (8)
Tax deduction limitation for gifts of stock or real property (% of adjusted gross income that may be deducted)	30% (8)	20% (8) (9)	30% (8)	10% of pre-tax profits (8)	30% (8)	30% (8)
Valuation of gifts of property other than publicly traded stock	Fair market value	Cost basis	Fair market value	Cost basis, if a foundation	Fair market value	NA (11)
Separate tax return required and open to public inspection	No	Yes	No	Yes (10), if a foundation	Yes	No

1. Legal structures of giving circles vary, resulting in different levels of donor control. Pooling resources with others also limits direct personal control.

2. Charity and donor can agree on how contribution is spent.

3. A restricted gift can be confined to the stated purpose, but the donor relinquishes control of the investments and its disposition. A donor advised fund permits the donor to make recommendations subject to the ultimate control of the community foundation.

4. Except when you create an endowment.

5. Any citizen may be elected or appointed to the board of any public charity. The donor gift does not guarantee such an outcome except in the case of supporting organizations.

6. Giving circles vary in requirements for involvement and in management structure and cost.

7. Community foundations often assess a management or administrative fee.

8. Excess in any year's donations can be carried forward for five years.

9. Except for gifts of publicly traded stock, the deductible value of lifetime gifts of closely held stock or real property is limited to tax basis, which is generally cost.

10. Corporate foundations must pay the same excise tax as any private foundation.

11. Giving circles typically accept donations of cash and stock only.

Accurate as of April 2000.