| |
The Community
Foundation
Serving Boulder County
|
A Private
Foundation
|
Length of Time
To Establish |
Most funds can be set up in as little
as one day. |
Requires creation of articles of
incorporation, bylaws, and filing with state and
IRS. Usually requires the review of an attorney.
Often the process takes more than three months. |
| Excise Taxes |
The fund is not required to pay excise
tax. Therefore, there is more money available for
charity. |
The private foundation pays excise
tax on net investment income, including net capital
gains. |
| Tax Preparation |
No tax return to file. |
Must file annual federal tax return,
disclosing investments, grants, trustee fees, salaries
and other expenses. |
| Investments |
Professional investment and expert
oversight, and the opportunity to continue working
with a chosen financial advisor. |
Must avoid investments that jeopardize
charitable purposes. |
| Required Payout |
None. Can vary from year to year. |
Must distribute 5% of net asset value
annually. |
| Grant Requests |
Experienced staff available to help
evaluate potential grantees. |
Must establish a process to evaluate
and respond to grant requests. |
| Annual Report |
Incorporated in the Foundation's
annual report. |
Must publish annual report. |
| Disclosure |
Can provide anonymity for the donor(s). |
Disclosure of contributions to the
foundation required. |
| Administrative Costs |
Much lower administrative costs.
Complete list of fees. |
Must bear all administrative costs. |
