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A supporting foundation functions very much like a private
family foundation, but because it is aligned with The Jewish
Community Foundation, your client can receive additional
tax and administrative benefits that would not be available
with a private foundation.
A lasting legacy
A supporting foundation can exist in perpetuity, ensuring
a lasting legacy for your clients and their family. Each supporting
foundation has its own board of directors made up of individuals
selected by the donor, as well as directors selected by The
Jewish Community Foundation. Because both groups of trustees
continue to elect their own successors, a supporting foundation
can exist in perpetuity, providing a significant means of
involving your client's family in enlightened philanthropy
for generations.
Professional support
Your client's supporting foundation has access to The Jewish
Community Foundation's research on community needs, as well
as their assistance in selecting grant recipients. Donors
can also have access to the latest research and information
on best practices in philanthropy at the national and international
level, as well as special programs, seminars, and other
resources to help family members become more strategic and
focused in their charitable pursuits. We will provide professional
staff to help your client and the board of your client's
foundation review grant proposals, prepare all necessary
federal and state tax and legal filings, and will assist
with general administration of the foundation.
Grants may be made to any agency or program that fits within
the broad purposes of the Jewish community, both domestically
and overseas.
Establishing a supporting foundation
To establish a supporting foundation, donors may contribute
cash, appreciated assets, or non-readily marketable assets.
No capital gains taxes are incurred when gifts of appreciated
assets are made and they are deductible at their full fair
market value.
Tax benefits, as compared with private foundations
Unlike private foundations, there is no excise tax on net
investment income. Supporting foundations are not subject
to the restrictions on investments and minimum distribution
requirements of private foundations, and when large contributions
are made, allowable income tax deductions are more liberal.
At-A-Glance:
- Provides tax benefits not available with private foundations
- Is not subject to excise taxes on investment income
- Is free from restrictions on investments and minimum
distribution requirements which apply to private foundations
- Offers ability to make recommendations concerning grants,
investments and management
- Involves younger generations in philanthropy
- Avoids administrative burdens inherent in private foundations
Converting from a private family foundation
If your client has a private family foundation and would
like to learn about alternatives, please note that it is
relatively easy to dissolve private foundations and transfer
assets to supporting family foundations.
More:
>>Comparisons between Supporting
Family Foundations and private foundations
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