| Characteristics |
Donor Advised Fund at AAACF |
Private Foundation |
| Tax exempt status |
Shares public charity status with AAACF |
Must establish separate tax-exempt status |
| Charitable Deduction for Cash Gifts |
50 % of adjusted gross income (AGI) in any one year |
30 % of AGI in any one year |
| Charitable Deduction for Gifts of Long-Term Capital Gain Property |
Deduction for full fair market value, limited to 30 % of AGI in any one year |
Deduction for full fair market value, limited to 20 % of AGI in any one year |
| Donor Control |
You may make recommendations on distributions |
You retain control over investments and distributions, limited by IRS requirements |
| Minimum Payout Requirements |
None |
IRS requires at least 5 % of asset value payout regardless of annual income. CARE Act passage may limit
ability to deduct expenses from this figure. |
| Practical Minimum Size |
$20,000 |
$500,000 to $1 million and up |
| Administration and Operations |
Provided by AAACF |
Must incorporate and manage on its own |
| Annual Costs |
Graduated schedule (1.0%-0.25%) based
on market value of the fund
| Can be costly, including administration, accounting and audit |
|
| Annual Taxes |
None |
Generally income tax exempt, but subject to excise tax up to 2% of net investment gain including capital gains |
| Annual Tax Filings and Returns |
None Required |
Separate tax and information return must be filed with required schedules |
