Comparisons Between a Charitable Fund and a Private Foundation
Donors have a choice deciding how to organize philanthropic activities: create a private foundation or establish a charitable gift fund at Dade Community Foundation. Creating a private foundation requires a number of regulations requirements, including undertaking an exemption application to the IRS, ongoing administrative and fiduciary responsibilities, reduced charitable deductions and a lack of privacy. Many donors are unaware of the management responsibilities and rules governing private foundations - a problem that can create traps for the unwary. Dade Community Foundation on the other hand, makes the practice of philanthropy easy. As a public charity the various regulations, taxes, and administrative requirements required to establish and manage a private foundation do not apply to community foundations.
As a public charity, Dade Community Foundation offers donors a less taxing way to give and advantages of giving as a public organization..
Comparison Chart
Dade Community Foundation offers:
Experience: Established in 1967 and serving Miami Dade County for over thirty five years. The charitable funds managed by Dade Community Foundation for individuals, families, organizations, corporations and private foundations and constitute a total endowment of $170 million. Every year - over 6 million in grants are distributed from our various funds in support of worthwhile community projects.
Non Profit: Dade Community Foundation is a Section 501 (c)(3) public charity under the Internal Revenue Code. We don't take a penny in profit from our services; everything is reinvested in quality of administration. And every charitable fund created in our organization qualifies for the maximum charitable deduction by law.
Permanent: Dade Community Foundation exists in perpetuity as caretakers of funds that will long outlast their donors. Foundation Board of Governors and staff understand the nature of a permanent legacy, respecting the wishes of the donor.
Convenient: It can take less then an hour to create a charitable fund with the Dade Community Foundation. Working with the community foundation after the fund is established couldn't be easier. The donor establishes the fund, defines its charitable purposes and decides on a name. The name may honor family or friends, or be designed to protect the donors anonymity. Dade Community Foundation monitors the investments to grow the fund, pays out grants from the income, and handles all the reporting and red tape.
Flexible: Charitable goals and interests differ for person to person and from generation to generation. Dade Community Foundation makes it easy for donors to direct their gifts toward areas of need they see fit. Donors may adopt the general charitable goals meeting the emerging needs of Miami-Dade County of the community foundation or they may support specific causes like education, arts and culture, environment or children in need, to name just a few. Some donors name specific charitable groups that have impressed them. Others choose to advise the community foundation of their changing philanthropic interests over the years.
Community Based: Dade Community Foundation focuses in the Miami-Dade community. As a result, the community foundation knows every social need, every community group on every street corner in every neighborhood. Dade Community Foundation knows where to invest donor dollars in order to do the most good. Donors benefit from this expertise as well as the community foundation's ability to monitor specific charitable organization's performance generations into the future.
Economical: If each individual charitable fund operated independently and had to recreate the foundation services on its own, the price tag would be enormous. But each of the charitable gift funds administered by Dade Community Foundation share the costs of an experienced staff and superb investment advisors. Dade Community Foundation offers the services of a $170 million plus organization to donors who start charitable funds for a lot less. In addition, administration fees are low and administrative overhead expense is quite reasonable.
Financially Sound: Dade Community Foundation assets are invested by some of the nation's most outstanding financial management firms, a list of which is available upon request. The Investment Committee of our Board reviews each manager's performance on a quarterly basis to ensure steady growth.
Well-Governed: The Board of Governors of the Dade Community Foundation provides stewardship for all contributed funds. Serving without compensation they approve all grants made, review investment performance and oversee the operation of the Foundation. Individually, the men and women who make up our Board of Governors represent our areas diversity and offer extensive knowledge and experience.
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