Greater Lynchburg Community Trust

Community Foundation vs. Private Foundation

Community Foundation Private Foundation
Getting Started


  • The Community Trust has been around
    since 1972.
  • Setting up a fund is easy and inexpensive.
  • There are no initial tax filing requirements.
  • There are no necessary corporate documents.
  • A foundation must be started from the
    ground up.
  • Can be costly and time consuming.
  • Requires filing with the IRS to receive
    tax-exempt status.
  • Must establish a separate corporation or trust.
Administration

  • Costs are shared by all funds.
  • Professional staff and knowledgeable.
  • Board who are informed of community needs.
  • Investments are managed by a responsible committee and investment managers.
  • Various costs for administration, insurance,
    accounting and audit.
  • Must obtain knowledge of community needs.
  • Requires research for managing
    investment vehicles.
Tax benefits


  • Cash gifts are deductible up to 50% of adjusted gross income.
  • Full market value of appreciated assets is deductible up to 30% of adjusted
    gross income.
  • Tax-exempt income.
  • The Community Trust handles filing Form 990.
  • Cash gifts are limited to 30% of adjusted
    gross income.
  • Full market value is deductible limited to 20% of AGI or tax cost basis is deductible limited to 50% of AGI.
  • Tax-exempt income but may be subject to excise tax of up to 2% of net investment gainsMust prepare Form 990-PF.
Donor control
  • Donor may make recommendations
    regarding distributions.
  • Donors may remain anonymous.
  • Donor retains control over investments
    and distributions.
  • Donor information is open to the public for up
    to three years.

 
You are here: Home For Professional Advisors Community vs. Private Foundation

Applying for a Grant

Applying for a grant with The Community Trust is very simple. We would be happy to help you with this process. Contact us now!

Read more...