| Donor-Advised Fund | Private Foundation | |
| Startup cost | None | Legal and other fees |
| Startup time | Immediate | Weeks or months |
| Feasible to start with modest donation (e.g., $5,000) | Yes | Not economical |
| Tax benefits for cash gift | Up to 50% of adjusted gross income | Up to 30% of adjusted gross income |
| Tax benefits for gifts of stock/real estate | Up to 30% of adjusted gross income | Up to 20% of adjusted gross income |
| Excise taxes | None | Up to 2% of net investment income |
| Ongoing administrative/ management fees | Pooled administration, low expenses | Liability insurance, direct administrative costs |
| Grant distribution responsibility | Community foundation must ensure grants are made to IRS-qualified reporting | Donor |
| Reporting requirements | None required of the donor. Community foundation handles all reporting | Annual 990-PF must be filed by the foundation |
| Required grant distribution | None | 5% annual distribution required |
| Privacy | Names of individual donors may be kept confidential if desired; grants may be made anonymously | Private foundations’ tax returns and substantial donor’s names may be accessed by the public |
