The Youngstown Foundation

Youngstown Foundation VS. Private Foundations

The costs of establishing and running a private foundation can be overwhelming. Traditionally, assets in excess of $5 million are needed before the private foundation becomes a cost effective alternative.

As a community foundation, The Youngstown Foundation provides donors with all the functionality of a private foundation, but with significant economic and administrative advantages.

The advantages of working with The Youngstown Foundation are:


Establishing the Fund

The Youngstown Foundation

The individual fund is established with a single signed document and contribution.

Private Foundation

Nonprofit corporation or trust must be established; board of trustees appointed; typically requires $1M or more.

IRS Charitable Status

Automatically covered under The Youngstown Foundation's charity tax exempt status.

Must apply to IRS for private foundation tax exempt status which can take 6 months or longer to be processed.

Start-up Costs

No "start-up" fees

Similar to Corporate start-up requiring substantial legal, accounting and operational start-up costs.

Excise Taxes


1.39% of net investment income

Tax Treatment: Cash Gifts

Deductible up to 60% of adjusted gross income.

Deductible up to 30% adjusted gross income.

Tax Treatment: Appreciated Publicly-Traded Stock, Held > 1 Year

Full market value deductible up to 30% of adjusted gross income.

Full market value deductible up to 20% of adjusted gross income.

Tax Treatment: Closely Held Stock or Real Estate

Full market value deductible up to 30% of adjusted gross income.

Deduction limited to cost basis; up to 20% of adjusted gross income.

Annual Distribution Requirements


Required to make annual charitable distributions of at least 5% of asset value. Penalty ta is 30% of undistributed amount.


Donor recommends grants to qualified nonprofit organizations.

Trustees control grantmaking subject to IRS requirements.

Grantmaking Expertise

Automatic access to Foundation's team of experts to help identify and assess grantees. Extensive research, tools and tips on effective grantmaking and other resources available.

Trustees must arrange, administer and support grantmaking and monitoring structure.

Annual Tax Returns and Audit

The Youngstown Foundation files annual tax returns and provides an annual independent audit.

Trustees must handle.


The Youngstown Foundation assets are pooled into a larger portfolio enabling it to diversity investment, decrease management fees and ensure superior returns.

Trustees are completely responsible for all investment related activities.

Fiduciary Responsibility

The Youngstown Foundation fulfills all responsibilities.

The private foundation board has full fiduciary responsibility.

Administrative Concerns

All administration services provided by Foundation.

Generally requires personnel for operations, tax filings, and investment management.

Privacy vs Publicity

Donors, their funds and grant awards can remain anonymous or they can be promoted through the Youngstown Foundation's marketing/public relations network.

Detailed tax returns are filed with data on grants issued, investment fees, trustee fees, staff salaries, etc. These returns are public records and can be compiled into grant-seeker directories.

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