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.