04090 L 03-04 Annual Report - The Dayton Foundation

Alternatives to Private Foundations
The Dayton Foundation
offers several alternatives
to establishing a private
foundation that are more
tax-advantageous, lower
in cost and administrative
headaches, afford greater
privacy, and provide far
greater advantages to
individuals or families
practicing philanthropy.
Family Foundation
SM
Plus and Family
SM
Foundation Plus–
Advised
Family Foundation Plus
and Family Foundation
Plus–Advised are The
Dayton Foundation’s newest
donor services, offering
donors most of the advantages
of a private foundation,
plus the benefits of a
community foundation.
As of June 30, 2004 –
a little over a year since
Family Foundation Plus
was launched – The Dayton
Foundation had 16 Family
Foundation Plus and Plus–
Advised funds under management
(listed with other
endowments on pages 15-
59), with collective assets
totaling $3,721,306.
Family Foundation
Plus (Alternative to
a New Foundation)
Similar to a private foundation,
a Family Foundation
Plus fund offers donordirected
giving to qualified
charities and the option of
family involvement through
generations. Tailored to
donors with a minimum
of $250,000 to initiate
their fund, Family Foundation
Plus offers the advantages
of a private foundation,
while avoiding the
disadvantages and gaining
significant tax advantages
and the resources of The
Dayton Foundation’s
professional staff. This
includes grantmaking,
investment, administration
and charitable giving
expertise, at a fraction of
the cost of administering
a private foundation.
Other benefits include:
❧ no excise or penalty
taxes,
❧ no start-up costs or
separate accounting or
legal fees,
❧ no separate, annual
990 filings,
“It’s an excellent service.
I’m very well satisfied.
The Foundation staff has
been wonderful. I feel good
that I can give to the organizations
of my choice
and that my family stays
involved.”
– Charles M. Uhl, Jr., Family
Foundation Plus donor and
retired president, Charles
M. Uhl Agency, Inc.
❧ better sustainability–no
minimum annual payout,
❧ significantly greater tax
deductibility of donations,
❧ flexibility in types of
assets donors may use to
fund their giving,
❧ the ability to give
anonymously,
❧ the option to involve
family, friends, even minors
as fund directors, and
❧ convenience and conservation
of donor time
and resources.
Family Foundation
Plus–Advised (Existing
Foundation Transfer)
Offering all the benefits
of Family Foundation Plus,
with the exception of
donor direction, Family
Foundation Plus–Advised
is an advised fund option
that enables individuals
with current private foundations
over $250,000 in
assets to roll them into
this vehicle. It provides a
simpler, better, more taxand
cost-effective way to
achieve the benefits of a
private foundation.
Supporting
Organizations
A supporting organization
of The Dayton Foundation
has no dollar minimum
and has its own 501(c)(3)
tax-exempt status from the
IRS and its own administration
and grantmaking
identity.
Advantages over a private
foundation include
lower cost, no required
annual grant distributions,
no excise taxes, maximum
tax advantages and the
charitable giving expertise
of The Dayton Foundation,
among others.
The Dayton Foundation
is the home for 16 supporting
organizations, each
making a unique contribution
to our Greater
Miami Valley community.
Their collective assets
totaled $50,054,483, as
of June 30, 2004.
Donor-Advised
Funds
Donor-advised funds can
serve well any individual
or family who is committed
to growing their fund
to at least $25,000. A costeffective,
tax-wise and
flexible option, this type
of endowed fund is the
administratively simplest
of the Foundation’s private
foundation alternatives.
Donors remain actively
involved in recommending
grants to charities that
they wish to support, with
the option to draw on the
Foundation’s grantmaking
expertise. The Foundation
handles the administrative
and oversight details, including
issuing grant
checks to charity.
As of June 30, 2004,
The Dayton Foundation
had 134 donor-advised
funds under management,
with collective assets of
$19,639,677. These funds
are listed with other new
endowment funds on
pages 15-59 of this report.
For more information on
these private foundation
alternatives and for a discussion
of which may be
the right one for the individual
donor’s needs and
circumstances, contact Joe
Baldasare, vice president
of Development, at (937)
225-9954, or Jan Clark, Esq.,
senior development officer,
at (937) 225-9947, or toll
free at (877) 222-0410.
The Dayton Foundation
recommends that people
consult with their legal, tax
or financial advisor when
contemplating establishing
any of these vehicles.
60 Alternatives to Private Foundations: The Dayton Foundation Report to the Community 2003-2004