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Individuals and Families About AEF Donor Advised Funds: Strategies In the News
|
Private
Foundation |
AEF’s
Donor Advised Fund |
|
| Valuation for charitable deduction: closely held stock or real estate | Cost Basis |
Fair
Market Value |
| Valuation of publicly traded securities | Fair
Market Value |
Fair
Market Value |
Income
tax deduction - |
30%
for cash, 20% for appreciated assets |
50%
for cash, 30% for appreciated assets |
| Excise tax on investment income | 1-2%
of income |
No excise tax |
| Set up expense | Costly |
No
set-up fees |
| IRS approval process | Time
consuming |
A
Fund can be established in less than a day |
| Annual distribution requirement | 5% |
None |
| Investment options | Wide
range |
Wide
range |
| Preparation of tax returns, IRS compliance, accounting, grants management, fiduciary oversight, legal and audit | Donor
must arrange for these services |
Provided
by AEF |
| Confidentiality | *None
- All information is publicly available via form 990-PF |
Donor
has flexible options: |
*Private foundations provide little confidentiality. With the advent of the Internet, information is more available than ever. Today, anyone with a computer can access Guidestar (www.guidestar.org) to gain information on any private foundation, including a scanned version of its 990-PF. Available information includes balance sheet detail (including investment holdings, a listing of directors (including contact information), every grant that is made (organization name and amount), and detail of administrative and investment management expenses.
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