What is the difference between a donor advised fund and starting my own foundation?
Starting a private foundation can involve substantial start-up costs and administrative expenses, such as the yearly filing of a Form 990-PF. But one of the most important differences is that National Philanthropic Trust receives more favorable tax treatment than a private foundation. Donor advised funds allow donors to take an income tax deduction up to 50% of adjusted gross income (AGI) for cash donations and up to 30% of AGI for appreciated securities; versus 30% for cash donations and 20% for appreciated securities, respectively, for a private foundation. Donor-advised funds also offer the ability to recommend grants anonymously, if so desired. View our Comparing a Donor Advised Fund vs. Private Foundation for more details.