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PHOENIX, Arizona – (Dec. 10, 1998) -- With the season of giving upon us, many of us would like to give some of our money to our favorite charitable organizations as well as receive the added advantage of a tax deduction before the end of the year. You might want to consider setting up a family foundation this month -- because now, it’s simpler than ever.

American Foundation, a Valley 501 (c)(3), non-profit organization that establishes charitable trusts and foundations, announced today it is launching a new turn-key Family Foundation Program that is as easy as setting up a new bank or brokerage account. In fact, this program is open to anyone with as little as $5,000.

The American Foundation’s charitable mission is to create new and more effective philanthropy, so it provides great incentives for individuals to be philanthropic. These plans can actually help increase income, lower taxes, and allow the transfer of more family wealth to heirs.

The American Foundation offers a simple program so individuals, families, corporations and other entities can start foundations. Donors complete a two-page application. New family foundation accounts can be established at the same bank or brokerage firm where the donor already does business.

"The program is appropriate for people looking for additional tax deductions before the end of the year," said Ben L. Schaub, the American Foundation’s founder and chief executive officer. "We provide one of the simplest and most flexible programs around."

Ben stated that the donors can fund their foundations with all types of assets – cash, stocks, real estate, business interests, cars and other personal property – provided they meet the $5,000 initial minimum.

By establishing a foundation, donors receive tax breaks. They can avoid paying capital gains levies on appreciated property and they can also reap income tax deductions for donations.

Family foundations set up through the American Foundation become accounts of the Phoenix group and receive the benefit of its public charity status. In fact, they offer higher tax advantages than private foundations that have not met certain Internal Revenue Service requirements, according to Schaub.

For example, donations to a family foundation can be used to offset 50 percent of adjusted gross income, compared with 30 percent for private foundations. Also most deductions can be taken at fair market value rather than at cost.

Donors receive semiannual reports on trust and foundation performance. The benefits of a setting up a family foundation instead of just giving money to charity are vast. A family foundation:

• Provides great asset protection
• Eliminates estate and gift tax
• Offers opportunities to significantly increase annual personal income
• Yields income tax deductions
• Eliminates capital gains tax on the sale of appreciated stock and properties
• Gives annual support to favorite charities
• Establishes a family legacy of giving

The American Foundation works with individuals, families, corporations, communities and professional advisors to establish charitable foundations and gift plans of all kinds.

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