Simpler Alternative to a Private Foundation
Often, people think a private foundation is the only charitable vehicle to invest and grant out charitable assets.
While private foundations are powerful giving vehicles for individuals and families, starting and maintaining them can be challenging. They require exhaustive time and resources, not to mention the magic ingredient of expertise to ensure all legal requirements are met.
Consider a simpler alternative by choosing a donor-advised fund, your Private Foundation Solution.
A donor-advised fund acts as a charitable giving account for you and your family and provides maximum tax benefits.
Through a donor-advised fund at San Diego Foundation, you receive the benefits of a private foundation, without being subject to start-up costs, tax-exempt status or annual income excise tax.
Unlike a private foundation, a donor-advised fund does not need to disclose certain financial information, including private tax return details. There are no complex legal requirements, and they do not require the annual 5 percent payout requirement that private foundations do.
“Converting our private foundation to a donor-advised fund at SDF allowed our large extended family the ease of grantmaking and carrying on the legacy of our grandparents without the headache of managing a private foundation.”
Ed & Mary Fletcher Family Fund Advisor
Donor-Advised Fund vs. Private Foundation
|Donor-Advised Fund||Private Foundation|
|Annual 5% payout required||✓|
|Maximum tax benefits||✓|
|Grant and admin services||✓|
|Form 990 required||✓|
|Fees re-invested into community||✓|
|Network with local donors||✓|
|Donor owns brand||✓||✓|
How Donor-Advised Funds Work
A donor-advised fund is a simple, tax-efficient way to give to your favorite nonprofit organization or area of interest.
Make your tax-deductible donation to SDF. You can contribute assets such as cash, stock or real estate and get one tax receipt.
Your initial contribution grows tax-free. It is invested to maximize your return and strengthen your grantmaking and social good power.
Recommend a grant to support your favorite community initiatives or nonprofit organizations when you are ready.
Consider Donor-Advised Funds For:
“We rely on SDF to identify the emerging needs in our region. With their guidance and our trust, we’re able to grant to nonprofits meeting those needs and making the most impact for causes that matter today.”
Linda F. Hervey
on behalf of the Hervey Family Fund
Private Foundation Solution Brochure
Donor-advised funds (DAFs) can be one of the best ways to give back to your community and help others. The Private Foundation Solution Brochure helps you better understand DAFs, their impact and the benefits they can provide for you or your family.
Connect with our Giving Team
Since 1975, San Diego Foundation has been a trusted advisor for individuals and families exploring ways to make the most of their charitable giving.
Interested in learning how donor-advised funds could be an alternative to a private foundation for you?
Contact Director of Development & Stewardship Cami Mattson at (619) 814-1385, email us or submit a Contact Form.