Comparison of Donor Advised Funds, Supporting and Private Foundations

United Jewish Endowment Fund Comparison of Donor
Advised Funds, Supporting
and Private Foundations
Feature
Donor Advised Funds
Supporting Foundations
Private Foundations
Creating the Fund or Foundation Established as a component fund of the Endowment Fund Separate non-profit entity created with assistance from the Endowment Fund Non-profit corporation or trust organized as a private foundation
Tax-Exempt Status Shares public charity status of Endowment Fund and is separately identified on Endowment Fund’s books in the donor’s name Shares public charity status of Endowment Fund Must apply for private foundation tax exempt status from IRS
Charitable Deduction – Cash Up to 50% of adjusted gross income with a five-year carry-over Same as Donor Advised fund Up to 30% of adjusted gross income with a five-year carry-over
Charitable Deducation – Appreciated Property Long-term capital gains property gifts are deductible at fair market value subject to 30% of adjusted gross income ceiling with five-year carry-over for unused deduction Same as Donor Advised fund Capital gain property gifts are deductable up to 20% of adjusted gross income ceiling with five-year carry-over
Grants Donor and other donor-designated advisors recommend grants to qualified charities. Foundation directors approve grants to qualified charities. Donor may appoint a minority of directors. Endowment Fund appoints majority of directors. Must make grants each year of at least 5% of asset value. Foundation directors approve grants to qualified charities. Donor appoints directors.
Investments Fund assets are professionally invested through the Endowment Fund. Donors of funds over $5 million may recommend investments. Foundation directors approve investments. May invest with Endowment Fund’s professionally managed pool or invest independently. Must research and secure own investment vehicles
Minimum Starting Balance $10,000 $100,000 No minimum
Administration All records kept by the Endowment Fund All records kept by the Endowment Fund Donor arranges for record keeping
Start-Up Costs No cost to donor Variable start-up costs include attorney document preparation and filing fees Similar to corporate start-up – substantial legal, accounting and operational costs
Annual Fees Minimum fee per year $250
1% on the first $500,000
.5% on the next $9.5 million
Fee on all assets over $10 million –negotiable		 Minimum fee $7,500
1% on the first $500,000
.5% on the next $9.5 million
.25% on all assets over $10 million.		 Subject to annual legal, accounting, and administrative expenses
Annual Taxes None None Potentially subject to annual excise tax of 2% on investment income
Annual Tax Filing and Returns No separate filing – Fund has total privacy The Endowment Fund files required IRS and State filings, which are available to the public Donor arranges for required IRS and State filings. Tax returns are available to the public

For more information, please contact:

Elan Burman
Director, Planned & Major Giving [email protected]
301-230-7211Elizabeth R. Goldstein, Esq.
Deputy Director Philanthropic Giving [email protected]
301-230-7228		 The Jewish Federation of Greater Washington
6101 Executive Blvd., Suite 100
North Bethesda, MD 20852
PHONE 301-230-7230
FAX 301-230-7273
TTY 301-230-7260
EMAIL [email protected]
WEB www.shalomdc.org/endowment

 

 The United Jewish Endowment Fund of the Jewish Federation of Greater Washington strives to help our community provide an enriched Jewish life today and a vibrant Jewish tomorrow. The Endowment Fund connects philanthropists with opportunities to meet Jewish needs and tikkun olam—repairing the world. Together, we strengthen and advance Jewish life in the Greater Washington area and around the world. The United Jewish Endowment Fund of The Jewish Federation of Greater Washington

  • Generates permanent funds to support the work of our Jewish Federation family of agencies and beyond to the Greater Washington community;
  • Catalyzes diverse funding sources to leverage our ability to meet Jewish needs and effect change in the broader community;
  • Awards seed money to new and innovative initiatives for enriching Jewish life and for tikkun olam; and
  • Furnishes funds for unanticipated and emergency needs locally and overseas.

The United Jewish Endowment Fund’s Legacy Society recognizes those individuals who create a permanent fund of at least $10,000 to sustain the vitality and strength of our Jewish community. If you establish a fund of $200,000 or more, you will become a member of the national Star of David Society of the Jewish Federations of North America.

Contributions to the United Jewish Endowment Fund are tax deductible to the full extent the law allows.

This material is not intended to provide professional or legal advice. Please consult your advisors for professional advice.

JFGW