They gave you the wheel. We’ll help you lead the way. The San Joaquin Community Foundation has a profound understanding of our diverse community’s nuanced needs. We can help you identify charitable solutions that align with your clients’ visions for our community. Whether it’s establishing a donor-advised fund or leaving a legacy gift, we’ll help you present donors with exciting choices. Let’s navigate the possibilities together. Learn more about our funds below. 

Donor Advised Funds vs. Private Foundations

Donor Advised Funds

Donor Advised Funds are convenient, flexible tools for individuals, families, businesses, or groups that want to be personally involved in making grants. Companies looking for an easy and effective way to give back to the community can establish a DAF and a team of employees can meet regularly to review local needs and recommend grants. Donor Advised Funds are typically less costly and easier to administer than private, family or corporate foundations. The donor or other named advisors can recommend grants to 501(c)(3) nonprofit organizations from the fund’s investment income and/or the corpus. Grants are made in the fund’s name, and the donor receives quarterly fund activity statements. The donor also has the right to name successor advisors to the fund who can recommend grants in the fund’s name after the death of the original donors.

Private Foundations

Private Foundations allow extensive donor control over distributions, board selection and investment management. However, private foundations are highly controlled by the IRS with many special restrictions and regulations, including administrative and reporting burdens, excise taxes and a required minimum payout.

Donor Advised Fund

Private Foundation

Creating the Foundation

Established at the Community Foundation by a simple agreement

Nonprofit corporation or trust organized as a private foundation with additional legal and tax advice

Tax Exempt Status

Shares the public charity tax exempt status of SJCF, as a “component” of SJCF

Must apply for private foundation tax exempt status from the IRS

Start-up Costs

No cost to donor

Similar to a corporate start-up requiring substantial legal, accounting, and operational start-up costs

Recommended Size

$5,000 or more

Substantial assets required ($5 – 10 million)

Charitable Deductions for Cash Gifts

Tax deduction of up to 50% of adjusted gross income (AGI)

Tax deduction of up to 30% of adjusted gross income (AGI)

Charitable Deductions for Appreciated Property

Tax deduction available for full fair market value of marketable securities and other property

Tax deduction may be taken for fair market value of marketable securities up to 20% of AGI. Tax deduction for other property is limited to the lower of cost or fair market value

Donor Control

Donor makes advisory grant recommendations; final decision rests with SJCF’s board of directors

Donor retains complete control over investments and grant making, subject to IRS requirements

Self-Dealing Rules

Private foundation self-dealing rules do not apply

Strict regulations prohibit most transactions between a private foundation and its donors (including related persons or organizations)

Payout Requirements

Upon donor discretion

Must pay out for charitable purposes at least 5% of its asset value annually, regardless of its income

Contact with Potential Grantees

SJCF provides at donor request

Donor must provide

Administrative Concerns (personnel, facility, gift and grant management)

Services provided by SJCF

Must establish and/or obtain these services

Annual Costs


Administration can be costly

Annual Taxes


Subject to an excise tax of up to 2% of net investment gain, including net capital gains and income

Annual Tax Filings and Returns (900 Report)

Not required (reported as part of SJCF’s annual reporting)

Must be filed by the private foundation with required reporting schedules


Fund assets are professionally invested through SJCF’s investment program

Must research, secure, and carefully monitor its own investment vehicles

Fiduciary Responsibility

SJCF fulfills the associated fiduciary responsibilities

The private foundation board has fiduciary responsibility

Liability and Risk Insurance

Provided by SJCF

Must be purchased by the private foundation

Get in Touch

Together, we can turn your client’s charitable goals into reality. Reach out today.

6731 Herndon Place
Stockton, CA 95219