Financial and Tax Professionals
Turnkey Family Foundation Program
Comparison of
Foundation
Formats
 |
| A solid foundation will flourish in posterity. |
A fund at the American Foundation
(Public Charity Status)
| Example: A couple wants to start a foundation which they can direct for the rest of their lives and then pass foundation direction on to their heirs. Their foundation will make annual grants to family-selected charities.They would like to begin immediately and want the process to be as easy and inexpensive as possible so that their funds can be put to use doing good in the world. |
| Benefits: The American Foundation does all accounting, tax filing, and makes grants to family-selected charities. The family (or family-recommended, qualified financial professional) can make recommendations for investments. The donors get the "public" tax deduction, which means that all contributions are 100% tax deductible at the rate of 50% of the donor's adjusted gross income for contributions of cash and to 30% of adjusted gross income for contributions of stock or other property, both with a five-year carry-over. * |
Best For:
|
Support Organization
A family foundation established as an independent corporation
(Public Charity Status)
| Example: An individual with large assets creates an organization with a board and its own tax status, to benefit one or more charities. |
| Benefits: This structure is more independent and has added management responsibilities. A support organization has its own governing structure and tax ID number. It may raise money as an independent entity, apply for grants and have its own offices, officers, employees, and programs. A support organization enjoys a "public" charity status because of its affiliation with the American Family, so all contributions to it receive the higher "public" charity deductions. Donors receive an income tax deduction for 100% of the fair market value of property transferred directly to this type of foundation. The amount of the deduction that can be used in any given year is the more favorable 50% of the donor's adjusted gross income for contributions of cash and 30% of adjusted gross income for contributions of stock or other property, both with a five-year carry-over. * |
Best For:
|
Private Foundation
(Does not have public charity status)
| Example: A family wants to help a cause in its own way with no ties to any other organization. They would like some tax deductions but the most important issue is complete and independent administration unattached from any other public charity. |
| Benefits: This type of foundation is similar to a support organization in that a private foundation may raise money as an independent entity, apply for grants, and have its own offices, officers, employees, and programs.In a private foundation, the donor(s) has complete and independent administration and managerial responsibilities. However, since it is "private" and not a "public charity," the tax benefits are less-the income tax deduction for most property gifts to a private foundation is limited to the cost basis in most cases. The limitation on how much of the deduction that can be used in any given year is also lower -30% of adjusted gross income for gifts of cash and 20% for gifts of assets with a five-year carry-over. * |
Best For:
|
* Please consult a qualified legal, financial and tax professional regarding the application of these rules to your individual circumstance.
About Us | Family
Foundations | Corporate Foundations
Financial and Tax Professionals
| News | Contact Us | Site Map | Home
4518 North 32nd Street, Phoenix, AZ 85018
Telephone: (602) 955-4770
Fax: (602) 955-4707
E-mail: info@americanfoundation.org
Tech Support: info@americanfoundation.org
Privacy Policy Use Notice Disclaimer