Geneseo is for Tomorrow (GIFT Foundation) is the only legally designated Community Foundation in Geneseo. All other Foundations in Geneseo are legally classified as Private Foundations. There are several distinct advantages.
Community Foundation
A community foundation is created by the citizens of a local area and is a tax-exempt public charity that helps people accomplish their philanthropic goals. Community foundations work in partnership with concerned citizens, nonprofits and governments to achieve community goals and maximize grant making effectiveness. They offer a variety of charitable funds to easily and effectively support the issues donors care about. Each fund is professionally managed, and endowed assets continue to grow over time. A community foundation supports community causes that matter to the donor and to the community. Community foundations are overseen by a volunteer board of leading citizens and often facilitate community-wide conversations about important community topics.
Private Foundation
Private foundations are subject to numerous technical rules and requirements of the IRS.
|
Community Foundation |
Private Foundation |
| Cash Gifts |
Deductible up to 50% of AGI |
Deductible up to 30% of AGI |
| Stock or Appreciated Assets |
Deductible up to 30% |
Deductible up to 20% of AGI |
| Excise Tax Paid Annually |
$0 |
2% on the net investment income unless qualified as exempt under IRS regulations |
| Privacy |
Yes, fund information is kept private and confidential |
No, must file IRS 990PF Form. Open for public inspection on the Internet |
| Minimum Payout Requirements |
None |
Minimum 5% of average asset value / year |
| Establishing a Fund with IRS Charitable Status |
Created by simple form |
Usually a professional advisor is required |
| Tax-Exempt Status |
Automatically covered by the Community Foundation |
Must be applied for and secured from the Internal Revenue Service |
| Annual IRS Tax Return |
Single IRS 990 form filed by Community Foundation
|
Must file a separate IRS 990PF form
for each fund
|
| Investment, Accounting, Audit and Tax Returns |
Donor selects a fund manager, Foundation handles the rest |
Trustees must perform, contract or
hire staff for these services |
| Self Dealing Rules |
Not applicable |
Strict prohibition under IRS rules |