Spruce Street Mansion

Historic Spruce Street Mansion
Home of The Community Foundation
Serving Boulder County

Thinking of Starting a Private Family Foundation?
Starting a private foundation is a good option for some, but before making a decision, consider some of the advantages gained by creating a partnership with The Community Foundation Serving Boulder County. The Community Foundation can be a way to gain favorable tax advantages and avoid the administration required to run a foundation.

 

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.

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