Compare Giving Strategies
Comparing Giving Strategies
When you have decided to make a charitable gift, you want to be sure it meets both your interests and your financial needs. Choosing the right partner can help you support the organizations you value while effectively managing your contributions.
Three popular approaches to actively managing your charitable giving are donor advised funds at TPF, commercial gift funds, and private foundations. Through TPF you can give directly to individual charities to support:
- Annual campaigns
- Capital campaigns
- Endowment campaigns and
- Specific needs or causes
As you consider timing and tax considertaions when setting up a formal giving vehicle, we will help you with your decision.. To help with your decision, the table below provides an overview of three different approaches to establishing a fund and managing the giving process.
Item to Consider | The Portage Foundation Donor-Directed or
Donor-Advised Fund |
Commercial Financial Institution Gift Fund | Private Foundation |
Donor involvement | Donor recommends grants to qualified nonprofit groups; grants are approved by GCF Governing Board | Donor recommends grants to qualified nonprofit groups. Grants are approved by trustees of the gift fund | Donor appoints board, which controls investments and grantmaking |
Income tax deductions for gifts of: | |||
Cash | Up to 50% of adjusted gross income | Up to 50% of adjusted gross income | Up to 30% of adjusted gross income |
Appreciated stock | Fair market value up to 30% of adjusted gross income | Fair market value up to 30% of adjusted gross income | Fair market value up to 20% of adjusted gross income |
Real estate and closely held stock | Fair market value up to 30% of adjusted gross income | Fair market value up to 30% of adjusted gross income | Cost basis up to 20% of adjusted gross income |
Grantmaking support | Professional staff can help identify and assess grant recipients, provide input on community needs, and verify nonprofit status of groups | Varies | Donors must arrange and support their own grantmaking and monitoring structure, or purchase support from GCF |
Start-up costs: | |||
Initial costs | None | None | Thousands of dollars for legal and accounting expenses and filing fees |
Minimum contribution | $5,000 | Varies | Typically millions of dollars |
Administrative requirements: | |||
Ongoing costs | Pooled administration; annual fee, competitive with similar services | Varies | Several thousand dollars for legal and accounting expenses, return prep and taxes |
Reporting | TPF handles all tax and reporting requirements, including annual 990 tax form. | Financial institution handles reporting | Annual 990 tax form must be filed |