Community foundations such as The Pittsburgh Foundation and The Community Foundation of Westmoreland County offer charitably inclined individuals and businesses many distinct advantages over private foundations. This includes in-depth knowledge of a community’s most pressing issues and concierge-level service to help guide you as you develop a philanthropic giving plan. Other advantages include:
| The Pittsburgh Foundation | Private Foundation | |
|---|---|---|
| Excise tax | No excise tax | Excise tax of 1 to 2 % |
| Tax-exempt status | Receives public charity status from the Foundation. | Must establish separate tax exempt status as a private foundation. |
| Charitable deduction limit | 60% for cash gift 30% for stock or real property |
30% for cash gift 20% for stock of real property |
| Minimum payout requirements | None. | At least 5% of asset value each year (regardless of income). |
| Timeline | Can establish within 24 to 48 hours. | Can take months to file paperwork. |
| Anonymity | Grantmaking can be anonymous. | No anonymity. |
| Minimum amount to establish | $10,000 | According to the Center on Foundations, a minimum of $2 to $3 million is practical to start a private foundation. |
| Investment options | Donor is able to select investment manager. | Donor is able to select investment manager. |
| Annual tax filing and returns | None required; The Pittsburgh Foundation files one 990 on behalf of all funds | Separate tax and information return must be filed annually along with required schedules. |
| Grantmaking and nonprofit expertise | Access to our expertise in nonprofit landscape, Center for Philanthropy, and suite of donor services to create a strategy for grantmaking and impact. | ----- |
| Next generation engagement | Trained staff can assist in family meetings and help with succession planning . | ----- |
To learn more about why a charitable giving fund may be right for you, please contact The Pittsburgh Foundation at 412-394-2653 or The Community Foundation of Westmoreland County at 724-836-4400.