Donor advised funds are a smart, attractive alternative to a private foundation.
When people want to make a difference in their community, incorporate family into philanthropy, and build a legacy, they consider starting a private foundation. While private foundations may be appropriate for some families, the administrative requirements and operating costs can be substantial.
A donor advised fund at the North Carolina Community Foundation is a flexible, convenient, cost-effective option for your clients considering a private foundation.
And now, with our Charitable Investment Partners Program, your client may continue engaging you as investment manager on their NCCF fund while taking advantage of the Foundation’s philanthropic expertise and relationship-based services.
The chart below compares key features of a private foundation with those of a donor advised fund:
Tax Deductibility
Ease
Cost
Grantmaking
Donor Advised Fund
Deduct up to 60% of AGI for cash gifts
Deduct up to 30% of AGI for gifts of long-term appreciated securities, real estate, closely-held stock
Quick and easy to establish; can be done in a matter of days
Fund assets professionally managed through NCCF or by your financial advisor through our Charitable Investment Partners Program
A DAF endowment may be started with a minimum gift of $25,000.
1% annual administrative fee (stepped down for funds over $1 million)
The NCCF Support Fee helps advance the charitable mission of NCCF, is reinvested into the community, and enables NCCF to provide you with robust donor services
No requirements for annual granting; 5% recommended
A dedicated NCCF team member will offer you personalized philanthropic guidance, as well as local and statewide knowledge and expertise
NCCF provides due diligence review of grantees
Anonymity available
Private Foundation
Deduct 30% of AGI for cash gifts
Deduct 20% of AGI for gifts of long-term appreciated securities; deduction limited to cost basis for gifts of real estate and closely-held stock
Several months and costly to establish
Responsible for all legal, accounting and filing
$10 million minimum recommended to justify operating costs
Annual excise taxes of 1-2%
All costs - legal, accounting, payroll, audit - incurred by private foundation
Annual minimum payout of 5% required, penalty on undistributed amount
Donor must establish and oversee all evaluation, monitoring, and reporting
Does your client have a private foundation but want to engage with NCCF?
Convert private foundation to a donor advised fund. If your client wants to simplify their involvement in the administration and maintenance of their private foundation but wishes to preserve the foundation’s legacy, consider converting it to a donor advised fund at NCCF. The name of the client’s private foundation may be preserved (although anonymity is also an option) and grantmaking may continue in accordance with their foundation’s original giving intent.
Keep private foundation and establish a parallel DAF at NCCF. Your clients with a private foundation may find value in establishing a parallel donor-advised fund to access the comprehensive services at NCCF, for anonymous grantmaking, or as a vessel to accept part or all of the private foundation’s required annual distribution to allow additional time for grant decisions.
Email 919-256-6923
For getting started and interim contact for advisors and donors in western counties
Beth Boney Jenkins
Development Officer, East
Email 910-782-2895
For advisors and donors in eastern counties
Jake Pope
Development Officer, Central
Email (919) 256-6917
For advisors and donors in central counties
{"tinyMCE_dummy":"","title":"Private Foundation Alternatives","url":"\/for-professional-advisors\/private-foundation-alternatives","meta":{"title":"","description":"","excludeFromSitemap":"No"},"ordinal":2,"content":"<h2>Donor advised funds are a smart, attractive alternative to a private foundation.<\/h2>\r\n<p>When people want to make a difference in their community, incorporate family into philanthropy, and build a legacy, they consider starting a private foundation. While private foundations may be appropriate for some families, the administrative requirements and operating costs can be substantial.<\/p>\r\n<p>A <a href=\"\/create-a-fund\/types-of-funds\/what-is-a-donor-advised-fund\">donor advised fund<\/a> at the North Carolina Community Foundation is a flexible, convenient, cost-effective option for your clients considering a private foundation.<\/p>\r\n<p>And now, with our <a href=\"\/for-professional-advisors\/chipp\">Charitable Investment Partners Program<\/a>, your client may continue engaging you as investment manager on their NCCF fund while taking advantage of the Foundation’s philanthropic expertise and relationship-based services.<\/p>\r\n<p>The chart below compares key features of a private foundation with those of a donor advised fund:<\/p>\r\n<p> <\/p>\r\n<table class=\"pfaTable\">\r\n<thead>\r\n<tr>\r\n<th> <\/th>\r\n<th>Tax Deductibility<\/th>\r\n<th>Ease<\/th>\r\n<th>Cost<\/th>\r\n<th>Grantmaking<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<th>Donor Advised Fund<\/th>\r\n<td data-title=\"Tax Deductibility\">\r\n<ul>\r\n<li>Deduct up to 60% of AGI for cash gifts<\/li>\r\n<li>Deduct up to 30% of AGI for gifts of long-term appreciated securities, real estate, closely-held stock<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td data-title=\"Ease\">\r\n<ul>\r\n<li>Quick and easy to establish; can be done in a matter of days<\/li>\r\n<li>Fund assets professionally managed through NCCF or by your financial advisor through our Charitable Investment Partners Program<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td data-title=\"Cost\">\r\n<ul>\r\n<li>A DAF endowment may be started with a minimum gift of $25,000.<\/li>\r\n<li>1% annual administrative fee (stepped down for funds over $1 million)<\/li>\r\n<li>The NCCF Support Fee helps advance the charitable mission of NCCF, is reinvested into the community, and enables NCCF to provide you with robust donor services<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td data-title=\"Grantmaking\">\r\n<ul>\r\n<li>No requirements for annual granting; 5% recommended<\/li>\r\n<li>A dedicated NCCF team member will offer you personalized philanthropic guidance, as well as local and statewide knowledge and expertise<\/li>\r\n<li>NCCF provides due diligence review of grantees<\/li>\r\n<li>Anonymity available<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<th>Private Foundation<\/th>\r\n<td data-title=\"Tax Deductibility\">\r\n<ul>\r\n<li>Deduct 30% of AGI for cash gifts<\/li>\r\n<li>Deduct 20% of AGI for gifts of long-term appreciated securities; deduction limited to cost basis for gifts of real estate and closely-held stock<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td data-title=\"Ease\">\r\n<ul>\r\n<li>Several months and costly to establish<\/li>\r\n<li>Responsible for all legal, accounting and filing<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td data-title=\"Cost\">\r\n<ul>\r\n<li>$10 million minimum recommended to justify operating costs<\/li>\r\n<li>Annual excise taxes of 1-2%<\/li>\r\n<li>All costs - legal, accounting, payroll, audit - incurred by private foundation<\/li>\r\n<\/ul>\r\n<\/td>\r\n<td data-title=\"Grantmaking\">\r\n<ul>\r\n<li>Annual minimum payout of 5% required, penalty on undistributed amount<\/li>\r\n<li>Donor must establish and oversee all evaluation, monitoring, and reporting<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>","excerpt":"","media":0,"custom":{"blocks":{"blocks":[{"fieldset":"fd39717673c942dfb102a174d17a8b99","fieldset_slug":"_wysiwyg","text":"<h2>Does your client have a private foundation but want to engage with NCCF?<\/h2>\r\n<p><strong>Convert private foundation to a donor advised fund.<\/strong> If your client wants to simplify their involvement in the administration and maintenance of their private foundation but wishes to preserve the foundation’s legacy, consider converting it to a donor advised fund at NCCF. The name of the client’s private foundation may be preserved (although anonymity is also an option) and grantmaking may continue in accordance with their foundation’s original giving intent.<\/p>\r\n<p><strong>Keep private foundation and establish a parallel DAF at NCCF.<\/strong> Your clients with a private foundation may find value in establishing a parallel donor-advised fund to access the comprehensive services at NCCF, for anonymous grantmaking, or as a vessel to accept part or all of the private foundation’s required annual distribution to allow additional time for grant decisions.<\/p>","image":"","alignment":""},{"fieldset":"8d2e0895df77444baf2690fb407972d5","fieldset_slug":"_button_block","button1_text":"Comparing Giving Options (PDF)","button1_link":"https:\/\/nmcdn.io\/e186d21f8c7946a19faed23c3da2f0da\/7868d48393ef4e3bb7bca8cdf7bc2f20\/files\/Comparing-Giving-Options-July-2023.pdf","button2_text":"","button2_link":"","button3_text":"","button3_link":""},{"fieldset":"fd39717673c942dfb102a174d17a8b99","fieldset_slug":"_wysiwyg","text":"<hr \/>\r\n<h2 style=\"text-align: center;\">Contact a Member of Our Team Today<\/h2>","image":"","alignment":""},{"fieldset":"458683df409c4ac9a3f9d1389daa0ac4","fieldset_slug":"_contacts","contact_1_image":"https:\/\/nmcdn.io\/e186d21f8c7946a19faed23c3da2f0da\/7868d48393ef4e3bb7bca8cdf7bc2f20\/files\/Kathryn-Holding_2.jpg","contact_1_name":"Kathryn Roebuck Holding, J.D.","contact_1_title":"Vice President of Philanthropic Services ","contact_1_email":"kholding@nccommunityfoundation.org","contact_1_phone":"919-256-6932","contact_1_blurb":"","contact_2_image":"","contact_2_name":"","contact_2_title":"","contact_2_email":"","contact_2_phone":"","contact_2_blurb":"","contact_3_image":"","contact_3_name":"","contact_3_title":"","contact_3_email":"","contact_3_phone":"","contact_3_blurb":"","contact_4_image":"","contact_4_name":"","contact_4_title":"","contact_4_email":"","contact_4_phone":"","contact_4_blurb":""},{"fieldset":"458683df409c4ac9a3f9d1389daa0ac4","fieldset_slug":"_contacts","contact_1_image":"https:\/\/nmcdn.io\/e186d21f8c7946a19faed23c3da2f0da\/7868d48393ef4e3bb7bca8cdf7bc2f20\/files\/Mason-Alberts.jpg","contact_1_name":"Mason Alberts","contact_1_title":"Director of Development","contact_1_email":"malberts@nccommunityfoundation.org","contact_1_phone":"919-256-6923","contact_1_blurb":"For getting started and interim contact for advisors and donors in western counties","contact_2_image":"https:\/\/nmcdn.io\/e186d21f8c7946a19faed23c3da2f0da\/7868d48393ef4e3bb7bca8cdf7bc2f20\/files\/Beth-Boney-Jenkins_2.jpg","contact_2_name":"Beth Boney Jenkins","contact_2_title":"Development Officer, East","contact_2_email":"bjenkins@nccommunityfoundation.org","contact_2_phone":"910-782-2895","contact_2_blurb":"For advisors and donors in eastern counties","contact_3_image":"https:\/\/nmcdn.io\/e186d21f8c7946a19faed23c3da2f0da\/7868d48393ef4e3bb7bca8cdf7bc2f20\/files\/Jake-Pope-web.jpg","contact_3_name":"Jake Pope","contact_3_title":"Development Officer, Central","contact_3_email":"jpope@nccommunityfoundation.org","contact_3_phone":"(919) 256-6917","contact_3_blurb":"For advisors and donors in central counties","contact_4_image":"","contact_4_name":"","contact_4_title":"","contact_4_email":"","contact_4_phone":"","contact_4_blurb":""}]},"masthead":{"title":"","counties":"","affiliate_logo":"","sub_text":"","background_image":"","caption":""},"latest_blog":{"post":""},"social_sharing":{"share_image":""},"the_latest":{"show_latest_posts_by":""}},"inMenu":true,"publishedAt":1632332236,"orderChildrenBy":"ordinal","enableComments":false,"permission":"read","visibleTo":"Everyone","id":"1aa22c7ffeeb477da66d6f9215d4c257","parent":"2b2b706b4cc9410cb130d40ae9ca32e7","node":115810,"created":1632332236,"modified":1710863639,"fresh":1,"type":"page","children":{},"relations":{}}
