DAFs vs Foundations
DAFs vs Foundations
DAFs vs Foundations
The flexibility that the UI DAF provides makes it very similar to a private foundation, with the exception of the costs and required 5% yearly distribution. DAFs are also significantly more tax-efficient than private foundations.
The flexibility that the UI DAF provides makes it very similar to a private foundation, with the exception of the costs and required 5% yearly distribution. DAFs are also significantly more tax-efficient than private foundations.
The flexibility that the UI DAF provides makes it very similar to a private foundation, with the exception of the costs and required 5% yearly distribution. DAFs are also significantly more tax-efficient than private foundations.
Donor-Advised Funds
Donor-Advised Funds
Private Foundation
Private Foundation
Fees & Setup
Fees & Setup
Immediate
Low administration fees and startup costs
Immediate
Low administration fees and startup costs
Can take several months
High administrations fees and startup costs
Can take several months
High administrations fees and startup costs
Causes to Support
Causes to
Support
Domestic and International
Grants and impact investments
Cannot issue grants to individuals
Domestic and International
Grants and impact investments
Cannot issue grants to individuals
Domestic and International
Grants and Impact Investments
Domestic and International
Grants and Impact Investments
Tax Benefits
Tax Benefits
Cash donation: up to 60% AGI tax deductibility
Short-term capital gain property: up to 50% AGI
Long-term capital gain property: up to 30% AGI
All securities deducted at Fair Market Value
Cash donation: up to 60% AGI tax deductibility
Short-term capital gain property: up to 50% AGI
Long-term capital gain property: up to 30% AGI
All securities deducted at Fair Market Value
Cash donation: up to 30% AGI tax deductibility
Short-term capital gain property: up to 50% AGI
Long-term capital gain property: up to 20% AGI
Fair Market Value for publicly traded stock
Non-public securities deducted at the cost basis (no appreciation)
Cash donation: up to 30% AGI tax deductibility
Short-term capital gain property: up to 50% AGI
Long-term capital gain property: up to 20% AGI
Fair Market Value for publicly traded stock
Non-public securities deducted at the cost basis (no appreciation)
Succession Plan
Succession Plan
Can name individuals, businesses, or charities as successor advisors for the DAF
Can name individuals, businesses, or charities as successor advisors for the DAF
Successors and officers confirmed only by vote of the board
Successors and officers confirmed only by vote of the board
Distributions
Distributions
No required distributions
No required distributions
IRS requires 5% distributions assets per year
IRS requires 5% distributions assets per year
Anonymity
Anonymity
Anonymous contributions possible
Anonymous contributions possible
All contributions are made public
All contributions are made public