The two most popular charitable giving vehicles are DAFs and Private Foundations. While there are similarities, there are also differences – especially related to time and costs incurred. Below is a brief comparison of the two:
|Setup Costs||None||Legal & Accounting|
|Management Fees||Generally, >$5,000||Generally >$250k|
|Typical Recommended Funding Amount||Generally, >$5,000||Generally, >$250k|
|Tax Deduction (% of Adjusted Gross Income)||Cash: 60% Appreciated Assets: 30%||Cash: 30% Appreciated Assets: 20%|
|Annual Minimum Distributions||None||Generally, 5% of assets|
|Qualified Recipients||501©(3) organizations only||Can be individuals Grant decision fully controlled by foundation|
If you’re interested in speaking with an advisor to discuss either of these options, we would love to start the conversation.