Private Foundation Services
Customized Solutions
We’re here to help, no matter where your clients are on their philanthropic journey.
Private Foundation Services
Do your clients already have a private foundation? We can offer valuable community insights and helpful philanthropic services to make their work even more impactful. If your client has already established a private foundation and is in need of additional services, such as back-office support, grant-making assistance, insights on current community needs, or information on local nonprofits, the Sioux Falls Area Community Foundation can help. We offer a variety of services on a fee-based schedule.
Our charitable support fee for entities for whom we do not hold or invest the assets are customized on a case-by-case basis.
Marianne Von Seggern with the Seed for Success Foundation shares how the organization works with the Sioux Falls Area Community Foundation.
Is your client considering a private foundation?
The chart below can be a resource as you consider the best vehicle to meet your client’s needs.
Private Foundations and Donor-Advised Funds at a Glance
Private Foundation | Donor Advised Fund | |
|---|---|---|
Administrative Fees | Typically high, but can be modest | Fees starting at 1% and decreasing for balances over $1 million |
Set-up Process | Legal work required, can be time consuming | Can be done in less than a day with no set-up fee |
Tax Deduction for Contributions | Cash: 30% of AGI Securities: 20% of AGI Privately Owned Assets: Cost Basis | Cash: 60% of AGI Securities: 30% of AGI Privately Owned Assets: Fair Market Value |
Excise Taxes | Up to 2% of annual investment income | None |
Annual Distributions (Grantmaking) | Required 5% distribution | Flexible, with no minimum requirement |
Anonymity | No | Yes, donors can choose full/partial anonymity if desired |
Lead beneficiary of CLAT | No | Yes |
Perpetuity | Yes, if desired | Yes, if desired |
Ongoing Administration | Responsible for administration and IRS filings | Community Foundation handles all administration and IRS filings |
Please note, exceptions to the rules always apply, and each situation is unique and should be evaluated based on circumstance.