Foundation Options Comparison

 Factors

Commercial

Gift Fund

Private Foundation

Essex County Community Foundation

Initial contribution  $10,000  $5 million to be cost-effective  $1,000
Start-up costs None  Legal and accounting fees  None
Annual administrative fees  1%-2.00%  On-going legal and accounting fees  1%-1.50%
Max tax deduction for gifts of cash (% of adjusted gross income)  50%  30%  50%
Max tax deduction for gifts of appreciated securities 30%  20%
30%
Must pay excise tax on investment No  Yes (1-2%)  No 
Minimum pay out required No  Yes (1-2%)  No 
Flexibility of choice Yes  Yes  Yes 
How likely to be perpetual High  High  High 
Requires donor time and expense No  Yes  No 
Anonymity No  No  Yes (full anonymity if desired) 
Grant making consultation No  No  Yes (no charge 
Access to community-wide agency knowledge base No  No  Yes (no charge 
Research and evaluation of charitable agencies No  Must hire staff  Yes (no charge 
Agency liaison services No  No  Yes (no charge 
Planned giving services Limited  No  Yes (no charge