Private Foundations	Community Foundation for Muskegon County Donor Advised Fund
Set-Up Procedure and Costs	Must incorporate and apply to IRS for tax-exempt status: Legal and Accounting fees to Establish	Simple agreement; no start-up fees or costs
Tax Treatment of Contributions	Current year tax benefits are limited gifts and 30% of income for cash gifts and 20% of income for appreciated property gifts	Current year tax benefits are 50% of income for cash gifts and 30% of income for appreciated property gifts
Contributions of Appreciated Property	Federal Income tax deduction for appreciated property gifts are generally limited to person's basis, except for appreciated securities.Michigan state income tax deduction limited to person's basis for all gifts of appreciated property	Federal and Michigan State income tax deduction for appreciated property gifts may be taken at 100% of fair market value.
Excise Taxes	2% of investment incomeannually	No tax on investment income
Investment, Audit, Accounting and Tax Returns	Must perform financial and administrative services, or contract or hire staff; annual 990-PF tax return required.	Community Foundation for Muskegon County (CFMC) handles all financial and administrative management, files annual tax return and provides annual independent audit.
Liability Insurance	Any director's and officer's liability insurance, employee bonding, and office insurance must be separately purchased	Automatically covered by CFMC's liability and office insurance policies
Grant Payout Requirements	Required to distribute 5% of private foundation assets annually to avoid penalty taxes	No payout requirement; can accumulate income for a sizable project or grant.
Grant Management	Must verify the charitable status of all recipient organizations	Community Foundation for Muskegon County verifies charitable status of all recipient organizations, plus donors have access to Community Foundation's strategic grantmaking services
Privacy	Required to file tax returns on grants, investment fees, staff salaries, etc.These are public records and are compiled into grantseeker directories.	Individual donors or grants can be kept private.If the donor wishes, the Community Foundation for Muskegon County can serve as a buffer between the donor and grantseekers.