| Legal identity | 501(c)(3) and 509(a)(1) (public charity) | 501(c)(3) (private charity) |
| Privacy | CF can protect your identity If you like | All information is public record |
| Annual payout requirement | None (monies can accumulate) annually | Grants must equal 5% of corpus |
| Tax Deductions | | |
| Income tax deductions for cash gifts | Up to 50% of adjusted gross income | Up to 30% of adjusted gross income |
| Income tax deductions for appreciate stock gifts | Fair market value up to 30% of adjusted gross income | Fair market value up to 20% adjusted gross income |
| Income tax deductions for real estate and closely held stock gifts | Fair market value up to 30% of adjusted gross income | Cost basis up to 20% of adjusted gross income |
| Deduction carry-over Available | Five additional years | Five additional years |
| Administrative and Grantmaking | | |
| Administration | Simple: All record keeping and accounting carried out by CF | More burdensome: requires record keeping and filing with the IRS |
| Grant making expertise | CF assistance to review and monitor proposals dealing with restrictions | Your professional staff, if any (can use family members). Subject to self-review and self-monitoring |
| Separate annual IRS tax return required | No | Yes |
| Control | Designated representatives may make recommendations but not control assets or grants | PF’s trustees retain control of board investments, grant making and reporting |
| Investment flexibility | CF offers investment strategies | PF’s trustees retain control of investments, but must divest closely held stock within five years |
| Cost | | |
| Tax on investment income | None | Up to 2% annually |
| Start-up costs | No cost to establish | Includes legal and accounting fees, staff, insurance, office space, and miscellaneous expenses |
| Ongoing costs | Moderate administrative fee depends on size and whether the fund is endowed | Ongoing legal and accounting fees, staff, insurance, office space and communication |
