_{Donor-Advised Fund (DAF) Vs. Foundation} 

 _{When you contribute cash, securities or other assets to a donor-advised fund at a public charity, you are generally eligible to take an immediate tax deduction.} 

_{Then   those   funds   can   be   invested  for  tax-free   growth   and   you  can  designate  the   grants  to  virtually   any  IRS-qualified  public  philanthropy.}

1. Deduction for cash – up to 60 % of AGI.

2. Deduction for securities and other appreciated assets – up to 30 % of AGI.

3. There is a five-year carry-forward for unused deductions.

   Capital Gains Tax: You will incur no capital gains tax on gifts of appreciated assets (i.e. securities, real estate, other illiquid assets.)

   Estate Tax: Your DAF will not be subject to estate taxes.

   Tax-Free Growth: Your investments in a DAF can appreciate tax-fre

   Alternative Minimum Tax (AMT): If you are subject to alternative minimum tax (AMT), your contribution will reduce your AMT impact.

Corporate – Personal Foundation 

• Effective Philanthropy.  The  foundation  vehicle  may  facilitate  organized,  systematic,  and  targeted  giving.

• Expanded Giving Opportunities.  Individuals may not claim charitable deductions for grants made to other individuals,  foreign nonprofit organizations,  or  non-charitable  organizations.  An  individual,  however,  may  achieve these  expanded  giving objectives by first making tax-deductible  donations  to  a  family foundation which may then in turn, once certain IRS  procedures  are  followed,  make  such  grants.

• Deductibility Plus Control.  Donors may make tax-deductible donations to their own family foundation and still, as foundation trustees, remain in  control  of  the  investment  and  management  of  the  funds  as  well  the  final charitable  disposition  of  the  gifts.

• Sheltered Income Plus Control.  Foundation investment income, held by the foundation's trustees, is exempt from taxation (with the exception of the 1-2% excise tax described below).

• Consistency in Giving. Under normal circumstances, foundations may accumulate and hold a portion of their funds. Foundations may also choose if and when to distribute such accumulated funds (or the income earned on accumulations). Thus, even though yearly contributions to the foundation may vary, giving levels are able to remain constant. Such consistency may be particularly helpful to grantees that rely on level funding from year to year.

• Payment of Reasonable Compensation. Under normal circumstances, family members and others may receive reasonable compensation from the foundation in return for services rendered.

• Reimbursement of Travel and Other Expenses. Reasonable and direct costs of site visits and board meetings may be paid by the foundation to family members, employees, and trustees.

• Double Capital Gains Tax Benefits. First, no capital gain is realized when appreciated property is donated to a foundation. Second, donors may claim a charitable deduction for the full market value of appreciated stock held in publicly traded companies.

• Estate Tax Reduction.  Assets transferred to family foundations are generally not subject to estate taxes. This may provide triple tax savings when combined with the benefits above.

• Public and Community Relations.  If desired, foundation grantmaking may bring recognition to family members.

• Privacy Concerns.  On the other hand, individuals who are already subject to continuous fundraising appeals and interruptions at home and work may wish to increase their privacy by referring all such inquiries to the family foundation.