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Why Choose Us?
Some of our donors initially considered
creating a private foundation. But the costs of start-up
and administration, the lack of privacy, and limited
tax deductibility led them to create a Donor Advised
Fund with The Minneapolis Foundation instead.
They found they could make as great a
charitable impact, enjoy the same level of recognition
and family involvement while receiving greater tax benefits.
And, as compared to charitable giving products offered
by commercial institutions, they have access to the
expertise, service, and all the benefits of working
with an experienced local partner.
We invite you to compare the options
for yourself.
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compare the options
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The Minneapolis
Foundation |
Private Foundation |
Commercial Donor Advised Fund* |
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Services Available
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strategy formulation |
yes |
fee-based |
no |
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grantmaking services |
yes |
fee-based |
no |
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peer networking |
yes |
n/a |
no |
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issues education |
yes |
fee-based |
no |
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on-line grant recommendations |
yes |
fee-based |
yes |
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Income Tax Deduction Limit
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cash gifts |
50% |
30% |
50% |
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as percentage
of adjusted gross income
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appreciated property |
30% |
20% |
30% |
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carry-over available |
yes |
yes |
yes |
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Amount Deductible
(subject to percentage limitations)
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Appreciated publicly traded stock |
fair
market value (FMV) |
FMV |
FMV |
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Other appreciated property (long-term) |
FMV |
basis |
n/a* |
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Administration and Fees
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Minimum Payout (5% req.) |
no |
yes |
in some cases |
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start-up costs |
none |
varies |
none |
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ongoing requirements
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separate tax return |
no |
yes |
no |
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accounting |
no |
yes |
no |
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record-keeping |
no |
yes |
no |
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investment management fees |
55-65
basis points** |
varies |
varies |
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administrative expenses |
1%*** |
varies |
varies, up to 4% |
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Excise Tax required |
no |
yes (1-2%) |
no |
*Policies of commercially affiliated
donor advised funds vary. Exceptions may exist.
*Most commercial gift funds do not accept
gifts of real property, such as real estate , privately
held stock, S-corporation stock, or artwork.
**Blended fee of Master Fund portfolio
managers. The fees vary, but are generally 55-65 basis
points.
***Based on a trailing, 12-quarter average
market value x # of units.
Comparison
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