The Pittsburgh Foundation

Private Foundations vs. The Pittsburgh Foundation

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.