Why the Hamilton Community Foundation Stands Out

Choosing the Right Charitable Giving Solution

When advising clients on charitable giving, it’s important to find the right structure that aligns with their goals, values, and financial plans. Below is a comparison of three common options: working with the Community Foundation, using a commercial charitable fund, or establishing a private foundation.

Key Differences at a Glance

Feature	Community Foundation	Commercial Charitable Fund	Private Foundation
Personalized Service	Local expertise with hands-on support from experienced professionals.	Varies by provider; typically offers online account access with limited customer service.	Requires staff or advisors to manage operations.
Investment Management	Professional investment management & oversight with options for financial advisors to manage assets.	Can have limited investment flexibility, depending on provider.	Requires independent management and compliance with federal guidelines.
Local Impact	Deep knowledge of community needs and connections to local nonprofits.	National focus; some providers offer limited local grant opportunities.	Can be locally focused but requires personal involvement and administration.
Tax Benefits	Maximum tax advantages as a public charity.	Offers favorable tax benefits for most providers.	Lower tax deductibility with stricter rules for charitable distributions.
Grantmaking Support	Assistance with identifying nonprofits, vetting organizations, and structuring gifts.	Self-service platform; level of support varies by provider.	Must conduct own due diligence and compliance with IRS rules.
Administrative Burden	We handle all compliance, recordkeeping, and reporting—even for complex gifts like real estate and closely held stock. Minimal effort required from donors.	Lower than a private foundation, but donors manage grant recommendations and nonprofit research. Many providers limit complex gifts for operational ease.	High burden. Requires legal setup and ongoing administration, often with dedicated staff. Also involves tax filings, board management, and IRS compliance.
Startup Time & Costs	No-cost setup with a low annual management fee; funds start at $5,000.	Instant setup with low fees, but services and costs vary by provider.	Expensive to establish, with legal and operational costs.
Anonymity & Recognition Options	Donors can choose to be fully anonymous or recognized for their giving.	Most providers allow anonymity or public recognition.	Requires proper legal structuring for anonymity; public filings are required.
Legacy & Multi-Generational Giving	Structured support for lasting philanthropy, including bequests and planned giving.	Some providers offer limited legacy planning options.	Can support generational giving but requires proper long-term management.

Why Choose the Community Foundation?

For clients who want personalized service, expert guidance, and local impact, the Community Foundation provides a flexible and cost-effective alternative to private foundations and commercial funds. We take care of the details—so your clients can focus on making a difference.