STW Development Foundation Versus a Private Foundation

STW - Funds can be established in a day
PRIVATE - Funds can take months to establish

STW - Inexpensive to establish/administer
PRIVATE - Expensive to establish

STW - Equally appropriate for any size assets
PRIVATE - Typically established with large assets

STW - No Annual Report to file
PRIVATE - Must file own tax return

STW - No requirement for annual payouts
PRIVATE - Requires 5% payout of asset value

STW - No excise tax
PRIVATE - Annual excise tax up to 2% on net income

STW - Full market value deduction for gifts of appreciate property
PRIVATE - Deduction at cost basis only for appreciated value

STW - Deduct up to 30% AGI for appreciated property; 50% for cash
PRIVATE - Deduct up to 20% AGI for appreciated property; 30% for cash

STW - Low annual management fees
PRIVATE - Costly on-going administration

STW - Donor can involve family and heirs in charitable giving
PRIVATE - Donor can involve family and heirs in charitable giving

STW - Anonymity can be maintained if desired
PRIVATE - Requires public disclosure

STW - No penalty taxes
PRIVATE - Penalty taxes may be imposed for excess business holdings

STW - Professional staff can provide consultation for grant making
PRIVATE - May need to obtain expert advice for effective grant making

STW - Can be established during lifetime or through trust of estate
PRIVATE - Can be established during lifetime or through trust of estate

STW - Fund name chosen by donor
PRIVATE - Foundation name chosen by donor