Comparison of Private Foundations and The Norfolk Foundation

Attributes	Private Foundations	Donor Advised Funds at The Norfolk Foundation
Amount Deductible
Publicly traded securities	Fair market value	Fair market value
Other appreciated property	Cost basis	Fair market value
Percentage Limitations
Cash Gifts	30% adjusted gross income	50% adjusted gross income
Appreciated property	20% adjusted gross income	30% adjusted gross income
Other Considerations
Excise tax on investment income	2%	None
Donor control	Legal	Advisory
Anonymity	No. Must file detailed tax returns, which are public information.	Yes. Full anonymity if desired.
5% distribution requirement	Yes	No. Distributions can be made up to the Foundation’s current spending policy.
Incorporation, tax exemption, audit/tax returns, directors/officers insurance, grants management, investment management, compliance, annual report.	Responsible for all functions; foundations less than $3 million have expenses ranging from 3-5% decreasing as the assets increase	Foundation handles all administration for a tiered fee based on fund size
Length of time to establish	Several months	Within 24 hours.
Primary Advantages	Control, independence, knowledge family identity, employment of children	Deductibility, knowledge of nonprofits, flexibility, permanence, freedom from paperwork, lower administrative cost