East Tennessee Foundation - ETF vs. Private Organizations

East Tennessee Foundation vs Private Organizations

	ETF	Private

Tax treatment of	Deductible up to 50%	Deductible up to
cash gifts	of Adjusted Gross Income	30% AGI

Tax treatment of gifts	Full Market Value	Full Market Value
of appreciated publicly-	deduction up to	up to 20% AGI
traded securities	30% of AGI

Tax treatment of	Full Market Value	Deduction limited
closely held stock	deduction up to 30%	to cost basis up
or real estate	of AGI	to 20% AGI

Excise Taxes	None	Tax of 1-2% of
on investments		net investment
		income annually

Required payout	None required. Can	5% of asset
	accumulate income for	value annually
	sizable project/grant

Incorporation and	Automatically covered	Must apply for
Tax exemption	by ETF	incorporation and
		tax exempt status

Privacy	Individual donors or grants	Foundation required
	can be kept private	to file detailed tax returns
	ETF as a buffer between	on grants, staff salaries,
	grant seeker and donors	investments, etc.

Liability and	Automatically covered	Must purchase any
insurance	by ETF's insurance	Directors & Officers
		liability insurance,
		employee bonding, etc.

Investment,	ETF handles all investments	Trustees must
Accounting Audit	and accounting. ETF files	perform or hire staff
and Tax Returns	annual tax return and	for these services
	provides an annual
	independent audit.

Professional Grantmaking Expertise	The Community Foundation	Professional staff must
	employs professional grantmakers. Donors have	be hired
	access to staff skilled
	in helpingdevelop a
	charitable program,
	making and monitoring
	grants, and evaluating
	results of those grants.