MNSights - Fall 2011 - (Page 13)

J>;7:L?I;H Questions Donor Advised Fund about Donor Advised Funds and Private Foundations Private Foundation T H E E X P E RT : Jean Vukas Roberts, What does it cost to run? ¹ vice president of philanthropic services for Minnesota Philanthropy Partners Deciding whether to create a donor advised fund or a private foundation can be a difﬁcult decision for some donors. Both have advantages. Donor advised funds are relatively inexpensive and easy to establish and administer. Private foundations allow for greater control of assets. —Jean Vukas Roberts What tax deduction may I take? That depends on the provider and the size of the fund. Pricing is typically tiered, with the average cost being 0.85 percent or less of assets each year, plus investment management fees.* Up to 50 percent of adjusted gross income for gifts of cash; 30 percent of adjusted gross income for stock or real property. Yes. If you like, the fund can make grants anonymously, and individual donor information can remain conﬁdential. The typical cost is 2.5 percent to 4 percent of the foundation’s assets each year.* Up to 30 percent of adjusted gross income for gifts of cash; 20 percent of adjusted gross income for stock or real property. No. Private foundations’ IRS ﬁlings—which contain information about grants, costs, trustees, etc.—are public. You are responsible for all administrative duties, including grant management, ﬁnancial services, record-keeping, tax returns, and so forth. º Can I be anonymous? g points Private foundations kin al What are my administrative responsibilities? You recommend grants to be given to speciﬁc nonproﬁts or charities. must give away at least 5 percent of their assets every year. Donor advised funds have no minimum payout requirements. t Do I keep control of my money? No. You legally relinquish the assets when you gift them to the fund. The provider’s staff works with you to fulﬁll your charitable goals Yes. You retain total legal control of the assets. *Source: National Philanthropic Trust As of (&&/, donor advised funds outnumbered private foundations by more than 2 to 1 nationwide. FA LL I 2011 Have It Both Ways: For the Frey family of Saint Paul, a donor advised fund at The Saint Paul Foundation has been a great complement to the private foundation they established in 1985. Jim Frey, president and CEO of the Frey Foundation, says that setting up the donor advised fund in 1997 made sense for tax reasons, but other beneﬁts soon became apparent. “The Saint Paul Foundation’s staff is engaged and creative,” he says. “They’re able to tell us, ‘Here’s the real need in our community.’” For advice on the best option for you, call Jean Vukas Roberts at 651-325-4263. 13 MN SIGHTS

Table of Contents for the Digital Edition of MNSights - Fall 2011

MNSights - Fall 2011
Contents
Give to the Max
What Local Mayors Want
Who Inspires Us: Designer John Larsen
How to Give Smart While Giving Green

MNSights - Fall 2011