HOME ABOUT US - What is a Community Foundation - History & Mission - Board, Committees & Staff - Investment Managers BECOME A DONOR - Establishing a Fund - Types of Funds - Benefits to Donors - Ways to Give - Established Funds AFFILIATES PROFESSIONAL ADVISORS - Working With Us - Giving Opportunities - Private Foundation Options - Transferring Private Foundation FOUNDATION PROGRAMS - Grants - Scholarships - Book of Memory - LEAVE A LEGACY® FOUNDATION NEWS - National Standard Compliance - Endow Iowa RESOURCES - Community Foundation Locator - Community Foundations - Endow Iowa - LEAVE A LEGACY® - Iowa Council of Foundations - Planned Giving - Iowa Nonprofit Resource Center - Community Vitality Center CONTACT ADDRESS 505 Fifth Street Suite 412 Sioux City, IA 51101 712-293-3303   Confirmed in Compliance with National Standards for U.S. Community Foundations
	PRIVATE FOUNDATION OPTIONS If you or your client are thinking about establishing a private foundation, but are looking for a simpler, more cost-efficient alternative, the Siouxland Community Foundation can help you analyze the pros and cons of creating a private foundation or a Donor Advised Fund through the Community Foundation as an alternative. Donor Advised Fund Donor Advised Funds are convenient, flexible tools for individuals, families, businesses, or groups that want to be personally involved in suggesting grant awards made possible by their gifts. Companies looking for an easier, more effective way to give back to the community can establish a Donor Advised Fund and a team of employees can meet regularly to review local needs and recommend grants. Donor Advised Funds are typically less costly and easier to administer than other forms of philanthropic giving such as family or corporate foundations. The donor or other named advisors can recommend grants to 501(c)(3) nonprofit organizations from the fund’s investment income and/or the corpus of the fund. Grants are made in the fund’s name, and the donor receives quarterly fund activity statements. The donor (if established by individuals) also has the right to name successor advisors to the fund who can recommend grants in the fund’s name after the death of the original donors. Private Foundation A private foundation allows extensive donor control over distributions, board selection and investment management. However, private foundations are highly controlled by the IRS with many special restrictions and regulations, including administrative and reporting burdens, excise taxes and a required minimum payout. As described in the following chart, establishing a Donor Advised Funds through the Siouxland Community Foundation (SCF) can serve as a cost-effective alternative to a starting up a private foundation or administering an existing one. Comparisons   Donor Advised Fund   Private Foundation Creating the Foundation Established at SCF by a simple agreement Nonprofit corporation or trust organized as a private foundation Tax Exempt Status Shares the public charity tax exempt status of SCF, as a “component” of SCF Must apply for private foundation tax exempt status from the IRS Start-up Costs No cost to donor Similar to a corporate start-up requiring substantial legal, accounting, and operational start-up costs Recommended Size $10,000 or more Substantial assets required Charitable Deductions for Cash Gifts Tax deduction of up to 50% of adjusted gross income (AGI) Tax deduction of up to 30% of adjusted gross income (AGI) Charitable Deductions for Appreciated Property Tax deduction available for full fair market value of marketable securities and other property Tax deduction may be taken for fair market value of marketable securities up to 20% of AGI. Tax deduction for other property is limited to the lower of cost or fair market value Donor Control Donor makes advisory grant recommendations; final decision rests with SCF’s board of directors Donor retains complete control over investments and grant making, subject to IRS requirements Self-Dealing Rules Private foundation self-dealing rules do not apply Strict regulations prohibit most transactions between a private foundation and its donors (including related persons or organizations) Payout Requirements Do not apply Must pay out for charitable purposes at least 5% of its asset value annually, regardless of its income Administrative Concerns(personnel, facility, gift, and grant managing) Services provided by SCF Must establish and/or obtain these services Annual Costs Minimal Administration can be costly Annual Taxes None Subject to an excise tax of up to 2% of net investment gain, including net capital gains and income Annual Tax Filings and Returns (990 Report) Not required (reported as part of SCF’s annual reporting) Must be filed by the private foundation with required reporting schedules Investments Fund assets are professionally invested through SCF’s investment program Must research, secure, and carefully monitor its own investment vehicles Fiduciary Responsibility SCF fulfills the associated fiduciary responsibilities The private foundation board has fiduciary responsibility Liability and Risk Insurance Provided by SCF Must be purchased by the private foundation
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