If you have established or manage an existing private foundation, converting to or establishing a donor advised fund or supporting organization comes with numerous advantages. In recent years, many donors have replaced their private foundations with a donor advised fund or supporting organization because of the added benefits such as lower administrative burden, succession planning, distribution support and ease of use.
There's an easier way to accomplish your philanthropic goals. Many families and individuals with private foundations have made the switch to either a donor advised fund or a supporting organization.
Donor-Advised Funds and Supporting Organizations benefit from more efficient administration, grantmaking support and reduced tax and reporting burden.
The Paso del Norte Community Foundation supports private foundations into transitioning to effective and cost-efficient giving vehicles.
The Paso del Norte Health Foundation was established in 1995 after the sale of Providence Memorial Hospital to Tenet Healthcare for $130 million. In 2018, the Health Foundation, which was a private foundation, transitioned to a supporting organization to the Paso del Norte Community Foundation to grow its assets through philanthropy, increase partnerships with external funders, and ultimately increase grant making to nonprofits in the region. One example of their vast impact in the region is the development of a master plan for the 60-mile Paso del Norte Trail.
Paso del Norte Health Foundation
Shortly after its founding, the First Light Community Foundation (FLCF) sought to be a supporting organization to the Paso del Norte Community Foundation to reach a broader audience to meet its mission and receive valuable administrative and grantmaking support. The relationship has enabled both organizations to better offer support in the community related to financial literacy.
FirstLight Community Foundation
Donor Advised Funds
Private Foundations
Start-Up Time
Immediately
Weeks or months to establish.
Start-Up Costs
None
Legal fees can be substantial.
Admin & Management Fees
0.35% - 0.85%
2.5% to 4.0% or more
Tax Deduction for Cash Gifts
60% of adjusted gross income
30% of adjusted gross income
Tax Deduction for Stock or Real Property
20% of adjusted gross income
Required Grant Distribution
Must expend 5% of net asset value annually - regardless of how much the assets earn.
Excise Taxes
0%
1% to 2% of net investment income annually
Privacy
Names of individual donors can be kept confidential, and grants can be made anonymously.
Must file detailed and public tax returns on grants, investment fees, trustee names, and more
Admin Responsibilities
Recommend grants to favorite charitable causes
Manage assets, keep records, select charities, administer grants, file tax returns, and more.
Your can donate cash directly into your fund via check, direct deposit or credit card via our online giving page.
Tangible personal property. Examples may be real estate, oil, gas, or mineral interests.
Bequests, appreciated securities, life insurance, retirement plans, and charitable remainder trusts, and more.
You're free to support any charity or charities of your choice, or designate your fund for a specific cause you're passionate about.
Nonprofit organizations - Support any registered 501c3 public charity in good standing in the U.S. or Mexico.
Existing Foundation Initiatives or Funds - Support one or more of the existing impactful charitable funds in the Paso del Norte Community Foundation.
Initiatives of the Fundacion Paso del Norte - Support health and well-being in Ciudad Juárez with a gift to our partner Foundation in Ciudad Juárez.
Initiatives of the Paso del Norte Health Foundation - Support the Health Foundation’s mission or any of its initiatives to promote health and prevent disease in the region.
The Paso del Norte Community Foundation is committed to helping you reach your charitable goals. Our individualized service allows us to work with you and/or your professional advisors, discuss complex gifts and facilitate family engagement in charitable giving, if desired. We work one-on-one with you every step of the way to ensure you create a giving plan you believe in.
Detailed reports ensure you always know your fund value and allow you to feel secure that your giving is making the impact you wanted.
Feel confident by having your financial advisor present during meetings and involved at any time you wish.
Our network of nonprofit partners puts us directly in-tune with our community's needs so that we can advise you on where your your donation can have the greatest impact.
Ready to get Started?
Mica Short has experience in the local nonprofit and philanthropic space. She can be a resource to you as you consider making a lasting impact through a charitable giving fund.
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