Giving Options Comparison

Community foundations, such as The San Diego Foundation, are tax-exempt charities organized as collections of individual funds. Although grants may be made outside of the region and even the country, the community foundation’s purpose is to support the long-term benefit of a geographical location. Unique among charitable organizations, community foundations are experts on both sides of the philanthropic exchange, providing premium services to individual funds while developing deep knowledge of local community needs.

Establishing a fund at The San Diego Foundation includes a number of benefits, including tax advantages, a lower level of administrative burden, an increased level of confidentiality due to reporting requirements, and customized services and research to ensure your grant making has the highest impact possible. For additional information and a better understanding of these benefits relative to other common options, see our comparison chart.

Guide to Giving Chart

	The San Diego Foundation Donor Advised Funds	Private Foundation	Supporting Organization	Commercial Gift Fund
Starting Your Fund or named Foundation	Established at The San Diego Foundation	Nonprofit corporation created by donor	Nonprofit corporation created with The San Diego Foundation’s assistance	Established at Commercial Brokerage Firm
Start-up Costs	No cost to donor	Similar to establishing a new corporation: substantial legal, accounting and operational start-up costs	Minimal costs through collaboration with The San Diego Foundation	Varies
Tax Status	Shares the public charity tax exempt status of The San Diego Foundation	Applies for private foundation tax exempt status from the IRS	Obtains public charity tax exempt status via The San Diego Foundation	Shares the public charity tax exempt status of gift fund
Charitable Deductions/ Cash Gifts	Tax deduction of up to 50% of adjusted gross income	Tax deduction is limited to 30% of adjusted gross income	Tax deduction of up to 50% of adjusted gross income	Tax deduction of up to 50% of adjusted gross income
Charitable Deductions/ Appreciated Property	Tax deduction available for full market value and up to 30% of adjusted gross income	Tax deduction limited to 20% of adjusted gross income and in some cases is limited to donor’s cost basis	Tax deduction available for full market value and up to 30% of adjusted gross income	Tax deduction available for full market value and up to 30% of adjusted gross income
Privacy	Availability of information is at donor’s discretion	Tax returns are public records, they are compiled into grantseeker directories and available on the internet	Similar to a private foundation	Varies within brokerage firms
Fiduciary Responsibility	The San Diego Foundation fulfills the associated fiduciary responsibilities	Board has full fiduciary responsibility	Administrative guidance provided by The San Diego Foundation	Similar to The San Diego Foundation
Payout Requirements	Do not apply	5% of the average market value of its net investment assets	Do not apply	Do not apply
Self-Dealing Rules	Private foundation self-dealing rules do not apply	Strict regulations prohibit most transactions between a private foundation and its donors (including related persons or corporation)	Private foundation self-dealing rules do not apply	Private foundation self-dealing rules do not apply
Donor Involvement	Donor makes advisory grant recommendations final decisions rest with The San Diego Foundation	Donor retains control over investments and grantmaking, subject to IRS requirements	Donor holds significant organizational influence, may appoint minority of the board	Similar to The San Diego Foundation
Administrative Concerns (Personnel, facility, gift and grant management)	Services provided by The San Diego Foundation with personalized services available	Must establish and/or obtain these services	Affiliation with The San Diego Foundation provides access to existing services	Varies, minimal personalization
Grantmaking Support	Full-service grantmaking research, analysis monitoring, and follow up	Must hire staff or consultant	Full service available at The San Diego Foundation (negotiated)	Not available
Administrative Costs	Minimal (0.5% - 2.0%)	Administration can be costly	Shared by The San Diego Foundation and therefore fees are competitive	Varies
Annual Taxes	None	Subject to excise tax of up to 2% of net investment gain including net capital gains	None	None
Annual Tax Filings and Returns	Not required	Required with supporting schedules	Prepared and filed by The San Diego Foundation (applicable filing cost)	Not required (reported as part of Gift Fund)
Investments	Fund assets are professionally invested	Must research and secure its own investment vehicles	May use professional investment services offered by The San Diego Foundation or outside services	Through Brokerage Firm