Frequently Asked Questions

Question:

How is creating a fund at Triangle Community Foundation the same or different from creating a private foundation?

Answer:

There are many differences between creating a fund at Triangle Community Foundation and creating a private foundation. Triangle Community Foundation is a public charity and therefore donors receive maximum tax benefits when they make a contribution. Whereas gifts made to a private foundation are more limited. Private foundations are exposed to excise taxes and various restrictions as to what they can and cannot hold in their investment pool.

More significant are the supportive services donors receive with a fund at Triangle Community Foundation – assistance with grantmaking, charitable planning, philanthropic education series, assistance establishing a family giving program – just to name a few. Consequently, many families have also begun converting their private foundations to funds at a community foundation.

Please refer to our Charitable Options chart for a comparison of Donor-Advised Funds, Supporting Organizations and Private Foundations.