The Advantages
Tulsa Community Foundation (TCF) recognizes that by partnering with hundreds of donors and working alongside nearly 300 local nonprofit organizations, TCF can assist the Tulsa area in righting negative community trends and improving opportunities and services for all residents. As one of the fastest growing community foundations in the nation, TCF works to maintain an accessible and intimate atmosphere for all donors – whether they contribute $5,000 or $100,000. In addition to working directly with donors to help them achieve their individual philanthropic goals, TCF offers benefits and solutions for each donor, including:
Convenience and Simplicity
- TCF offers simple and effective solutions for philanthropic goals; funds take little time to create.
- TCF then provides all administrative services, including accounting, auditing, financial management, due diligence, grantmaking, and receipting – ever mindful of donor goals.
Flexibility and Choice
- Donors may offer advice on every grant made from their fund, or entrust decisions to the foundation staff and trustees.
- TCF connects Donors with charitable organizations that correspond to their interests.
Tax Advantage
- As a public charity, TCF benefits from maximum tax deductions and other advantages not available to private foundations.
- Upon making a gift, each donor receives an immediate and maximum allowable tax deduction.
Professional Management
- Every asset invested with TCF is professionally managed according to the Foundation’s statement of Investment Guidelines and objectives established by its Board of Trustees.
- Each fund benefits from being invested with the assets of all other Funds,, resulting in lower management fees, greater investment diversification and minimized investment risks.
Public Accountability
- To ensure the quality and security of our operations, an independent certified audit is performed annually.
- TCF publicizes its work in an annual report and TCF’s most recent IRS Form 990 is available for public inspection.
Optional Recognition
- Donors may choose complete anonymity or full recognition for their grants.
Philanthropic Assurance
- Should the intended beneficiaries of a fund become obsolete, TCF will redirect the gift to charities with similar goals at the request of the donors.
TCF Donor Advised Fund, Supporting Organization Fund vs a Private Foundation
| Fund or Foundation Attribute | Donor Advised Fund | Supporting Organization (SO) | Private Foundation |
|---|---|---|---|
| Setup Process | Established at TCF. | Created with TCF assistance. | Privately and independently organized. |
| Tax Status | Shared public charity exemption through TCF. | Receives public charity exemption on its own. However, such status is favored because the SO supports TCF. | Must apply for private foundation exemption status through IRS. |
| Startup Costs | No costs to donor. | Minimal costs through collaboration with TCF. | Similar to corporation setup. Required substantial legal, financial and operational work. |
| Deductions (Cash Gifts) |
Up to 50% of adjusted gross income. | Up to 50% of adjusted gross income. | Limited to 30% of adjusted gross income. |
| Deductions (Appreciated Property) |
Up to 30% of adjusted gross income. Deducted at fair market value. | Up to 30% of adjusted gross income. Deducted at fair market value. | Limited to 20% of adjusted gross income or, in some cases, donor’s cost basis. |
| Privacy | Fund assets and grant activity are confidential – known only to the fund’s advisors and select TCF staff and trustees. | SO is required to file detailed IRS Form 990 on all its assets, contributions, and grants. Forms filed are public records available for public inspection and review. | Foundation is required to file detailed IRS form 990 on all assets, contributions and grants. Forms filed are public records available for public inspection and review. |
| Excise Taxes | No excise taxe imposed. | No excise tax imposed. | Excise tax of 1%-2% of annual net investment income, including net realized capital gains. |
| Required Annual Payout | No required payout. Income can accumulate in fund while grant recommendations are investigated and considered. | No required annual payout at this time, though Congress is considering minimum payouts similar to private foundations. | Required to expend 5% of asset value annually – whether or not the foundation’s assets and investments earn 5%. |
| Investment, Accounting, Audit and Tax Returns | TCF handles all investments and accounting, files annual tax return and provides annual independent audit. | SO’s Board of Directors must perform, contract or hire staff for these responsibilities and services. | Trustees must perform, contract or hire staff for these responsibilities and services. |
| Donor Advised Fund | |
|---|---|
| Setup Process | Established at TCF. |
| Tax Status | Shared public charity exemption through TCF. |
| Startup Costs | No costs to donor. |
| Deductions (Cash Gifts) |
Up to 50% of adjusted gross income. |
| Deductions (Appreciated Property) |
Up to 30% of adjusted gross income. Deducted at fair market value. |
| Privacy | Fund assets and grant activity are confidential – known only to the fund’s advisors and select TCF staff and trustees. |
| Excise Taxes | No excise tax imposed. |
| Required Annual Payout | No required payout. Income can accumulate in fund while grant recommendations are investigated and considered. |
| Investment, Accounting, Audit and Tax Returns | TCF handles all investments and accounting, files annual tax return and provides annual independent audit. |
| Supporting Organization (SO) | |
|---|---|
| Setup Process | Created with TCF assistance. |
| Tax Status | Receives public charity exemption on its own. However, such status is favored because the SO supports TCF. |
| Startup Costs | Minimal costs through collaboration with TCF. |
| Deductions (Cash Gifts) |
Up to 50% of adjusted gross income. |
| Deductions (Appreciated Property) |
Up to 30% of adjusted gross income. Deducted at fair market value. |
| Privacy | SO is required to file detailed IRS Form 990 on all its assets, contributions, and grants. Forms filed are public records available for public inspection and review. |
| Excise Taxes | No excise tax imposed. |
| Required Annual Payout | No required annual payout at this time, though Congress is considering minimum payouts similar to private foundations. |
| Investment, Accounting, Audit and Tax Returns | SO’s Board of Directors must perform, contract or hire staff for these responsibilities and services. |
| Private Foundation | |
|---|---|
| Setup Process | Privately and independently organized. |
| Tax Status | Must apply for private foundation exemption status through IRS. |
| Startup Costs | Similar to corporation setup. Required substantial legal, financial and operational work. |
| Deductions (Cash Gifts) |
Limited to 30% of adjusted gross income. |
| Deductions (Appreciated Property) |
Limited to 20% of adjusted gross income or, in some cases, donor’s cost basis. |
| Privacy | Foundation is required to file detailed IRS form 990 on all assets, contributions and grants. Forms filed are public records available for public inspection and review. |
| Excise Taxes | Excise tax of 1%-2% of annual net investment income, including net realized capital gains. |
| Required Annual Payout | Required to expend 5% of asset value annually – whether or not the foundation’s assets and investments earn 5%. |
| Investment, Accounting, Audit and Tax Returns | Trustees must perform, contract or hire staff for these responsibilities and services. |
*TCF recommends that donors consult with their tax professional for advice in connection with their financial circumstances and plan.