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Your Advantage in Partnering with OCF

With so many charitable demands and philanthropic options before you, we know making an informed decision requires considering many factors. When weighing the options presented by a commercial charitable fund or private foundation, there are distinct advantages of supporting an Oregon Community Foundation donor advised fund. Here is a comparative overview:

 

  OCF Charitable Fund Commercial Charitable Gift Fund Private Foundation
Grantmaking and Investments Donor recommends grants to qualified nonprofit groups. Donors may choose from OCF's investment pools. Donor recommends grants to qualified nonprofit groups. Donors may choose among firm's investment pools. Donor appoints a board, which controls investments and grantmaking.
Tax Status Covered under OCF's public charity status. Covered under nonprofit status of corporate entity's charitable subsidiary. Must apply to IRS for private foundation tax-exempt status.
Income Tax Deductions for Gifts of: OCF Charitable Fund Commercial Gift Fund Private Foundation
Cash Up to 50% of adjusted gross income Up to 50% of adjusted gross income. Up to 30% of adjusted gross income.
Publicly Traded Securities Fair market value up to 30% of adjusted gross income. Fair market value up to 30% of adjusted gross income. Fair market value up to 20% of adjusted gross income.
Real Estate & Closely Held Securities Fair market value up to 30% of adjusted gross income. Fair market value up to 30% of adjusted gross income. However, real estate and closely held securities are usually not accepted. Deductible at cost basis.
Grantmaking Expertise Staff helps to identify and assess grantees, provides input on community needs, and ensures recipients are qualified and effective. Educational resources and tools are available. Most do not offer personalized advice on grantee selection. Must arrange and support its own grantmaking and monitoring structure.
Grants to Individuals Allowed under some circumstances (e.g., scholarships) Typically not permitted Allowed under some circumstances (e.g., scholarships). Extra oversight required.
Distribution Requirements None Varies - some require a minimum of 5% of the fund's net assets on a five-year rolling basis. At least 5% of net asset value annually.
Learn about distributing to an OCF fund.
Start-Up Considerations OCF Charitable Fund Commercial Gift Fund Private Foundation
Costs None None Several thousand dollars for legal and accounting expenses and filing fees.
Time Frame Immediate Immediate Several months
Minimum Contribution $50,000 Usually $10,000 to $25,000 for individuals. None, but smaller private foundations may not be cost effective.
Annual Administrative Requirements OCF Charitable Fund Commercial Gift Fund Private Foundation
Fees
Permanent Family or Community Fund:*
1st $2 million
0.85%
Next $3 million
0.55%
Next $5 million
0.35%
Amounts > $10 million
0.10%
(Rates shown do not include investment management costs.)		 Based on size of fund, usually starting at 1% of assets and declining for larger funds. Grantmaking, administrative and investment support are staffed and financed independently.
Taxes None None Excise tax of up to 2% of net investment income, including net capital gains.
Reporting None None Annual tax return, including detailed financial schedules, filed by foundation.
Privacy Donors may remain anonymous. Donors may remain anonymous. Donors may remain anonymous, but IRS 990PF form lists officers, directors and trustees.

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