For Donors > Public Charity vs. Private Foundation?

PVF is a 501(c)(3) public charity. Establishing a Donor-Advised Fund at a public charity has several advantages over establishing a private foundation. This chart compares the two:

Task Private Foundation Public Charity (PVF)
Establishing a giving entity Incorporation with state; Recognition by IRS Simply open a Donor Venture Fund (donor-advised fund)
Staffing and administrative requirements Personnel and office costs range from 11% to 25% Full use of PVF's professional staff - 2% administrative fee
Federal excise tax 2% annually Not applicable
Payout requirement 5% annually Not applicable
Tax returns Must be filed annually Handled by the public charity
Tax deduction Up to 30% Up to 50%

 
All disbursements from a Donor Venture Fund at PVF are made at the donor's recommendation, with the approval of PVF's Board of Directors.

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