Compare Your Clients' Options
01 MCF Donor-Advised Fund
Donor recommends grants to qualified nonprofit groups. Donors may choose from among MCF's investment pools.
02 Commercial Donor-Advised Fund
Donor recommends grants to qualified nonprofit groups. Donors may choose from among firm's investment pools. In some cases, donor's investment advisor can manage assets.
03 MCF Supporting Organization (Type 1)
Supporting Organization board has complete control over investments and grantmaking. MCF and donor work together to select board.
04 Private Foundation
Donor appoints board, which controls investments and grantmaking.
01 MCF Donor-Advised Fund
Covered under MCF's public charity status.
02 Commercial Donor-Advised Fund
Covered under nonprofit status of corporate entity's charitable subsidiary.
03 MCF Supporting Organization (Type 1)
Entitled to public charity status based on its relationship with MCF.
04 Private Foundation
Applies to IRS for private foundation tax-exempt status.
01 MCF Donor-Advised Fund
Up to 50% of adjusted gross income.
02 Commercial Donor-Advised Fund
Up to 50% of adjusted gross income.
03 MCF Supporting Organization (Type 1)
Up to 50% of adjusted gross income.
04 Private Foundation
Up to 30% of adjusted gross income.
01 MCF Donor-Advised Fund
Fair market value up to 30% of adjusted gross income.
02 Commercial Donor-Advised Fund
Fair market value up to 30% of adjusted gross income.
03 MCF Supporting Organization (Type 1)
Fair market value up to 30% of adjusted gross income.
04 Private Foundation
Fair market value up to 20% of adjusted gross income.
01 MCF Donor-Advised Fund
Fair market value up to 30% of adjusted gross income.
02 Commercial Donor-Advised Fund
Fair market value up to 30% of adjusted gross income. Usually real estate and closely held securities are not accepted.
03 MCF Supporting Organization (Type 1)
Fair maket value up to 30% of adjusted gross income.
04 Private Foundation
Deductible at cost basis up to 20% of adjusted gross income.
01 MCF Donor-Advised Fund
Professional staff is available to help identify and assess grantees, provide input on community needs, and ensure recipients are qualified and effective. Educational programs available.
02 Commercial Donor-Advised Fund
Varies. Most do not offer personalized advice on grantee selection.
03 MCF Supporting Organization (Type 1)
Professional staff is available to help identify and assess grantees, provide input on community needs, and ensure recipients are qualified and effective. Educational programs available.
04 Private Foundation
Foundation must arrange and support its own grantmaking and monitoring activities.
01 MCF Donor-Advised Fund
Not allowed, except in specific instances (e.g., qualified scholarships).
02 Commercial Donor-Advised Fund
Typically not permitted.
03 MCF Supporting Organization (Type 1)
Not allowed, except in specific instances (e.g., qualified scholarships).
04 Private Foundation
Not allowed.
01 MCF Donor-Advised Fund
Allowed
02 Commercial Donor-Advised Fund
Usually not allowed
03 MCF Supporting Organization (Type 1)
Allowed
04 Private Foundation
Allowed
01 MCF Donor-Advised Fund
None
02 Commercial Donor-Advised Fund
Varies. Some require a minimum of 5% of the fund's net assets on a five-year rolling average.
03 MCF Supporting Organization (Type 1)
None
04 Private Foundation
At least 5% of net asset value annually. Penalty tax is 30% of undistributed amount.
01 MCF Donor-Advised Fund
None.
02 Commercial Donor-Advised Fund
None.
03 MCF Supporting Organization (Type 1)
MCF covers most costs.
04 Private Foundation
Several thousand dollars for legal and accounting expenses and filing fees.
01 MCF Donor-Advised Fund
Immediate.
02 Commercial Donor-Advised Fund
Immediate.
03 MCF Supporting Organization (Type 1)
Several months.
04 Private Foundation
Several months.
01 MCF Donor-Advised Fund
None.
02 Commercial Donor-Advised Fund
Varies, usually $5,000-$25,000.
03 MCF Supporting Organization (Type 1)
$5 million recommended.
04 Private Foundation
None, but smaller private foundations may not be cost-effective.
01 MCF Donor-Advised Fund
0.5% of assets for administrative fees (minimum $500), plus investment expenses ranging from 0 to 0.75%.
02 Commercial Donor-Advised Fund
Based on size of fund, usually starting at 0.60% of assets and declining for larger funds. Investment expenses usually range from 0.10% to 1.25%.
03 MCF Supporting Organization (Type 1)
0.5% of assets plus actual investment expenses, audit fees, and tax return preparation fees.
04 Private Foundation
Grantmaking, administrative, and investment support are staffed and financed independently.
01 MCF Donor-Advised Fund
None.
02 Commercial Donor-Advised Fund
None.
03 MCF Supporting Organization (Type 1)
None.
04 Private Foundation
Excise tax is 2% of net investment income, including net capital gains.
01 MCF Donor-Advised Fund
None.
02 Commercial Donor-Advised Fund
None.
03 MCF Supporting Organization (Type 1)
Annual tax returns and audits prepared and filed by MCF.
04 Private Foundation
Annual tax return, including detailed financial schedules.
01 MCF Donor-Advised Fund
Donors may remain anonymous.
02 Commercial Donor-Advised Fund
Donors may remain anonymous.
03 MCF Supporting Organization (Type 1)
Donors may remain anonymous, but IRS Form 990 lists officers, directors, and trustees.
04 Private Foundation
Donors may remain anonymous, but IRS Form 990-PF lists officers, directors, and trustees.
