Affluent individuals who wish to make a commitment to philanthropy often consider establishing a private foundation.  Actually, as the following table shows, a donor advised fund with NPT offers numerous benefits over a private foundation, and is easier to create.

  Donor Advised Funds Private Foundations
Start-Up Costs: None, can be established immediately Legal fees and other start-up costs can be substantial; typically takes several weeks and often months to create
Ongoing Administrative and Management Fees: 85 basis points (0.85%) or less, plus investment management fees Substantial, typically 250-400 basis points (2.5% to 4% per year)
Tax deduction limits for gifts of cash: 50% of adjusted gross income 30% of adjusted gross income
Tax deduction limits for gifts of stock or real property: 30% of adjusted gross income 20% of adjusted gross income
Valuation of gifts: Fair market value Fair market value for publicly traded stock, cost basis for all other gifts, including gifts of closely held stock or real property
Required Grant Distribution: None, on donor's timetable Must expend 5% of net assets value annually, regardless of how much the assets earn
Excise Taxes: None, all investment earnings grow tax free Excise tax of 1% to 2% of net investment income annually
Privacy: Names of individual donors can be kept confidential if desired, and
grants can be made anonymously		 Must file detailed and public tax returns on grants, investment fees, trustee names, staff salaries, etc.
Administrative Responsibilities: Recommend grants to favorite charitable causes Manage assets, keep records, select charities, administer grants, file annual state and federal tax returns, maintain board minutes, etc.
Perpetuity: NPT's DAFs can exist in perpetuity Foundations can exist in perpetuity