Choosing Your Giving Strategy

Giving to a charity provides both tangible and intangible rewards, knowing of course that your gift will continue the good work being done. The simplest gift is a direct donation of cash to an organization or cause in which you believe, or to that organization’s fund at YCF.

But, what if you want more flexibility to:

  • Benefit more than one group,
  • Support a broad field of interest, or
  • Ensure funding is available beyond your lifespan or that of the charity.

Foundations can provide that flexibility along with the benefit of making a tax-deductible gift. Community, private and corporate foundations provide a variety of giving options that are tailored to your specific needs. The community foundation has additional benefits, however, offering the most convenience and simplicity to accomplish your philanthropic goals.

YCF already exists and setting up a fund is as simple as defining your goals and contacting us. Setting up a private foundation can be time-consuming and costly.

YCF accepts smaller gifts while the private foundation needs substantial assets to be cost-effective.

At YCF, your fund is part of a larger pool of funds. Administrative costs are shared and remain low.

YCF works continually with the community, which makes it better prepared for effective grant-making. Its staff and board of directors is a broad-based group of community leaders who also have access to statewide and national data to support your fund’s purposes.

And finally, your fund can be what you want and can change simply, without legal intervention, should its purpose become impossible to fulfill This ensures that your dollars are constantly at work, forever.

The following chart outlines specific decision-making and tax consequences to each option. Review and discuss with your professional advisors and the staff of YCF before making a decision that is right for you.

A Gift to Charity
YCF Community Foundation Fund
Private Foundation
Corporate Giving Program, Foundation, or Fund
Supporting Organization of YCF (Type I)
Donor controls investment strategy.
No
No
Yes
Yes
Limited
Donor sets giving priorities
Yes
Yes
Yes
Yes
Limited
Permanence of Gift
None
High
High
Varies
Low
Overall level of donor involvement
None
Low to High
High
Low
High
Donor control of governing board
No
No
Yes
Yes
Limited
Minimum yearly grant distribution
No
No
Yes
Yes. if foundation
No
Tax payment on investment income and realized capital gains (1- 2%)
No
No
Yes
Yes, if foundation
No

Tax deduction limitations on gifts of:

Cash
50%
50%
30%
10% of pre-tax profits
50%
Publicly Traded Securities
30%
30%
20%
10% of pre-tax profits
30%
Real Estate, Closely Held Securities, and Other Special Categories
Fair Market Value
Fair Market Value
Cost Basis
Cost Basis if foundation
Fair Market Value
Requires separate tax return
No
No
Yes
Yes, if foundation
Yes