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The Community Foundation of Lorain County is dedicated to enriching the lives of those living and working in Lorain County, Ohio.

The Community Foundation of Lorain County vs. a Private Foundation

A fund at the Community Foundation of Lorain County is easy and inexpensive to establish. A private foundation requires a donor to create a new organization, apply for tax-exempt status, and pay taxes and legal and accounting expenses. 

A gift of cash to a fund at the Community Foundation of Lorain County allows a deduction of up to 50 percent of a donor’s Adjusted Gross Income (AGI). A gift of cash to a private foundation allows a donor to deduct up to 30 percent of AGI.

By creating a fund at the Community Foundation of Lorain County, a donor may deduct gifts of most appreciated property at their fair market value, up to 30% of AGI. For a gift of appreciated property to a private foundation, the maximum deduction is limited to 20% of AGI.

No tax is imposed on the investment income of a fund at the Community Foundation of Lorain County because it is a public charity. A private foundation pays up to 2% federal excise tax on its net invested income and realized gain.

A donor may remain anonymous. A private foundation must make available to the public the name and address of any substantial contributor.

Minimum distribution requirements for a fund with the Community Foundation of Lorain County are negotiable. A private foundation, on the other hand, must distribute annually at least 5% of its net investment assets, regardless of whether that amount is actually earned.

There are fewer restrictions on a fund at the Community Foundation of Lorain County. There are strict regulations regarding self-dealing between a private foundation and those who manage, control, or contribute to it and persons or corporations closely related to them. A private foundation, along with its donor and other “disqualified persons” (including members of the board and staff), may not hold more than 20% of a related corporation’s voting stock.

There are fewer investment restrictions on a fund at the Community Foundation of Lorain County. A private foundation may not make certain types of investments.

There are fewer IRS reporting requirements on the Community Foundation of Lorain County grants.

Gifts from a fund of the Community Foundation of Lorain County are almost always considered “public support,” thus helping the recipient charity retain its public charity status. A private foundation grant is usually not considered “public support” in its entirety and, thus, is not as helpful to the recipient charity in retaining its public charity status.

Connect with Us

Danielle-Locke
Danielle M. Locke, CAP, MPA
Gift Planning Officer
 

Through our efforts, the Foundation seeks to improve the quality of life and to instill a greater sense of unity in Lorain County.

We support innovative programs and act as a catalyst in identifying problems and sharing information with individuals, other foundations, and corporations.

We exercise and promote leadership in meeting the changing needs and opportunities in the community.

We value integrity, which we define as always doing the right thing.

We believe in purposeful and collaborative community leadership.

We believe the perpetuity of our efforts are linked to sustainable practices.

We value community, which we define as putting self aside for the betterment of the whole.

We provide a permanent instrument for receiving and managing charitable gifts and bequests.

We value excellence, which we define as providing the best service to all.

We work to mobilize individuals to become active partners in building a better community.

We believe strategy, creativity, and adaptability are keys to thriving in a constantly changing world.

We believe integrity is our greatest asset and value trust earned with fiscal responsibility, ethical stewardship, and transparency

We believe access to the CFLC should be fair, inclusive, and equitable.