In the past, when wealth was passed from one generation to the next, establishing a private foundation was often the only option available for carrying out an individual’s or family's philanthropic wishes.

Today, there's another way: establishing a fund at the Maine Community Foundation. By joining the many fund holders at the foundation, donors can avoid some of the costs and challenges of establishing and operating a private foundation, but still shape a lasting philanthropic legacy.

The Maine Community Foundation (donor advised, scholarship and field of interest funds) vs. Private Foundations and Commercially Sponsored Gift Funds:

	Maine Community Foundation	Private Foundation	Commercially Sponsored Gift Funds
Initial Contribution	$25,000	$5 million to be cost effective	$10,000+
Start Up Costs	$250 Fund Creation Fee	Legal and accounting fees ($1,500 - $5,000)	None
Annual Combined Fees (Admin. & Investment)	1.5 % - 1.75 %	On-going legal and accounting fees (approx. $1,000 annually)	1% - 1.75%+
Appreciated Property -- Publicly Traded Stocks	Fair market value	Fair market value	Fair market value
Other Property	Fair market value	Cost basis	Fair market value
Cash Gift Limitation (adjusted gross income)	50%	30%	50%
Appreciated Property Limitation (adjusted gross income)	30%	20%	30%
Carry Over Available	Yes	Yes	Yes
Pay-out requirement	None	Yes	None
Excise tax on investment income	None	Yes	None
Restrictions on scholarship fund grants	None	Yes	None
Grantmaking referrals and consultation	Yes -- no additional fees	Must hire staff or consultant	None
Education programs and meetings on grantmaking and community issues	Yes	Must hire staff or consultant	None
Research and evaluation on charitable organizations and programs	Yes -- no additional fees	Must hire staff or consultant	None
Anonymity	Yes -- full anonymity if desired	Substantial contributor's name must be available	Yes
Full range of Planned Giving Opportunities	Yes	Additional legal fees	Some

The right choice is different for every individual and family.

It is important to seek the guidance of an attorney and financial advisor who can help you weigh the tax and other financial consequences based on your particular set of circumstances.

A private foundation may wish to consider the advantages of "rolling" into a fund at the Maine Community Foundation.

The foundation's staff is also available to assist in identifying the best choice for donors and their families.