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If you’re considering philanthropic alternatives, you may be looking at the differences between establishing a Donor Advised fund with the Area Foundation and starting your own private foundation. In weighing your options, it is important to consider these questions:
- What kind of impact do you want to make with your philanthropic dollars? How will you decide the best use of your funds?
- How much involvement do you want in the day-to-day operations? How much administration and management do you wish to take on yourself?
- How much control do you want over the investment of the funds?
- What are the tax implications of a private foundation vs. a community foundation?
One of the most valuable benefits of the Area Foundation is access to our grants staff. Our team works hard to stay attuned to community needs and the various nonprofits serving our community. Whatever your area of interest, we are very willing and able to help you find a cause you can support. Areas of giving we have supported in the past are varied, but always depend on our donors’ interests.
Starting and running a private foundation requires both time and money. A private foundation will require a considerable amount of your time, not only in establishing and maintaining it to make sure it complies with Internal Revenue Service regulations, but also in researching the best recipients for your funds. It will also require time from family members or paid staff later to ensure continuity.
The Area Foundation has an experienced staff to handle all the administrative details of your fund. Our Investment Committee is focused on maximizing the returns on our donors’ funds.
If you already have a private foundation that you’re finding burdensome to administer, you may convert it into a donor advised fund or into a supporting organization within the Area Foundation. Converting a private foundation into a supporting organization at the Area Foundation will enable you to retain the name and purpose of the private foundation and free yourself from the administrative and compliance responsibilities.
Whether your giving capabilities are modest or monumental, a community foundation can customize a personal fund of lasting value and impact.
Like its national counterparts, the San Antonio Area Foundation is a fully tax-exempt public charity formed to serve a wide range of donors concerned about quality-of-life issues, locally and throughout the country.
SAAF is governed by a cross section of San Antonio leaders, and our funds are currently invested with a diverse group of money managers under the guidance of an experienced Investment Committee.
Donors receive a quarterly statement reflecting that quarter’s beginning balance, investment income, appreciation (or depreciation as the market dictates), contributions, grants and closing balance.
Establishing a fund is very simple and you’ll find none of the administrative and tax requirements that occur when you start a private foundation. You’ll get the maximum tax advantages for income, gift and estate tax purposes. If you have something special to give, such as real estate, we’ll work with you through our Real Estate Service to minimize liability.
Best of all, you’ll have professional management of your funds and the peace of mind that if a nonprofit’s mission changes, we’ll be aware of it. One of our many functions is to monitor charities our donors support, ensuring that all funds are allocated according to your wishes. |
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