Donor-Advised Funds vs. Private Foundations

Making an impact starts with choosing the right method of donating. For many donors, having a donor-advised fund with us offers greater flexibility, lower costs, and more convenience than establishing a private foundation while still allowing you to support the causes you care about.

Why Many Donors Choose Donor-Advised Funds

Donor-advised funds are simple, efficient charitable giving accounts that let you make a contribution, receive an immediate tax deduction, and recommend grants to nonprofits over time. At DuPage Foundation, we handle the investment management, compliance, and administration so you can focus on giving.

Key Differences

	Donor-Advised Fund	Private Foundation
Ease of Creation	Immediate	Must create a new legal entity; can take months
Start-Up Costs	None beyond your initial gift	Significant legal and administrative fees
Tax Benefits	Deduct up to 60% of AGI for cash gifts; up to 30% for stock and other appreciated assets	Deduct up to 30% of AGI for cash gifts; up to 20% for stock and other appreciated assets
Annual Distribution Requirement	None	Must distribute at least 5% of assets annually
Administrative Responsibilities	None apart from recommending grants	Must manage assets, bookkeeping, grant administration, tax filings, minutes, etc.
Privacy	Option to give anonymously	Public tax return listing assets, grants, and donor information
Federal Excise Tax	None	1.39% excise tax on net investment income
Closely-Held Stock, LP, LLC Interests, & Real Estate	Valued for charitable deduction at market value	Valuation for charitable deduction is limited to cost basis

The DuPage Foundation Advantage

With a donor-advised fund at DuPage Foundation, you’ll enjoy:

Lower Cost

Maximize your giving power with minimal overhead.

Reduced Administration

We handle the details so you can focus on impact.

Better Tax Advantages

Receive more favorable deductions on contributions.

Flexibility & Privacy

Give anonymously or share your story to inspire others.

Local Expertise

Partner with a trusted community foundation that knows DuPage.

Succession Planning

Create a charitable legacy for future generations.

Which Option is Right for You?

For donors who want to simplify their giving, increase flexibility, and maximize impact, a donor-advised fund with DuPage Foundation is often the best choice. We’ll help you craft a giving strategy that meets your goals today and creates a lasting benefit for years to come.

To explore how a donor-advised fund can help you achieve your charitable vision, contact:

Michael Trench

Vice President for Advancement

630.665.5570 | michael@dupagefoundation.org