Frequently Asked Questions

Question:

What is the advantage of Triangle Community Foundation over a private foundation?

Answer:

A fund at the Foundation is less costly to establish than a private foundation, in terms of both time and money. Our staff can help your clients establish a fund in a matter of days and then handles all the administrative details and reporting. Establishing a private foundation can take months or longer, and the private foundation then becomes responsible for substantial legal, accounting and operational matters.

A private foundation is usually endowed by a single family or corporation and controlled by that family or corporation. In contrast, a community foundation derives its support from a broad spectrum of the general public and is controlled by a board of community leaders. Because it is publicly supported and controlled, the community foundation is accorded certain advantages over private foundations by the IRS, including the following:

Higher deduction limits for donors.
No excise tax imposed.
No minimum payout requirement.
No separate tax reporting on individual funds.