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Giving Options Summary Chart
From Toolkit for Giving: Ways to Give
The chart below provides a summary comparison of the major types of charitable giving options. The chart is meant to offer basic summary information, and is not a substitute for professional counsel — we encourage you to discuss details with your professional advisors.
Charitable Giving Options |
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|
Corporate Giving Program, Foundation or Fund |
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| Donor can control investment of assets |
No |
Yes |
No |
Yes |
Limited |
Limited (1) |
| Donor can control giving priorities |
Yes (2) |
Yes |
Limited (3) |
Yes |
Limited |
Limited (1) |
| How likely to be perpetual |
Low (4) |
High |
High |
NA |
High |
Low |
| By virtue of gift, donor may control who serves on governing board |
No (5) |
Yes |
No (5) |
Yes |
Limited |
Yes |
| Requires donor time and effort, plus expense of staff and management |
No |
Yes |
No (7) |
Yes |
Yes |
Yes (6) |
| Minimum payout required |
No |
Yes |
No |
Yes, if a foundation |
No |
Yes |
| Must pay 1-2% tax on investment income and realized capital gains |
No |
Yes |
No |
Yes (10), |
No |
No |
| Tax deduction limitation for gifts of cash (% of adjusted gross income that may be deducted) |
50% (8) |
30% (8) |
50% (8) |
10% of pre-tax profits (8) |
50% (8) |
50% (8) |
| Tax deduction limitation for gifts of stock or real property (% of adjusted gross income that may be deducted) |
30% (8) |
20% (8) (9) |
30% (8) |
10% of pre-tax profits (8) |
30% (8) |
30% (8) |
| Valuation of gifts of property other than publicly traded stock |
Fair market value |
Cost basis |
Fair market value |
Cost basis, if a foundation |
Fair market value |
NA (11) |
| Separate tax return required and open to public inspection |
No |
Yes |
No |
Yes (10), |
Yes |
No |
1. Legal structures of giving circles vary, resulting in different levels of donor control. Pooling resources with others also limits direct personal control.
2. Charity and donor can agree on how contribution is spent.
3. A restricted gift can be confined to the stated purpose, but the donor relinquishes control of the investments and its disposition. A donor advised fund permits the donor to make recommendations subject to the ultimate control of the community foundation.
4. Except when you create an endowment.
5. Any citizen may be elected or appointed to the board of any public charity. The donor gift does not guarantee such an outcome except in the case of supporting organizations.
6. Giving circles vary in requirements for involvement and in management structure and cost.
7. Community foundations often assess a management or administrative fee.
8. Excess in any year's donations can be carried forward for five years.
9. Except for gifts of publicly traded stock, the deductible value of lifetime gifts of closely held stock or real property is limited to tax basis, which is generally cost.
10. Corporate foundations must pay the same excise tax as any private foundation.
11. Giving circles typically accept donations of cash and stock only.
Accurate as of April 2000.
