If you plan to leave a portion of your estate to charity you can use a private foundation to take an immediate tax deduction, maintain a degree of control over the donated assets and accept tax deductible contributions from others.
Immediate tax savings are available with private foundations
Private foundations are a form of 501(c)(3) tax-exempt organizations. You can take a deduction and reduce taxable income at the time you transfer assets to a private foundation, but retain control over the assets until they are put to use for their exempt purpose, even if that period extends port-mortem.
Control charitable giving with a private foundation
You can designate you or a family member as the president of the foundation. This allows you to take a tax deduction today without relinquishing control of charitable giving. For high-net worth individuals private foundations can be an excellent way to create a legacy through charitable giving.
Use your private foundation as a mechanism to increase retirement income
As the president of the non-profit company you are able to draw reasonable salary and benefits, including retirement benefits, for your efforts. You can also provide an income for your heirs by naming them replacement officers who can succeed you after death.
We can help you:
- Determine if a private foundation is right for you
- Prepare your exempt status application
- Determine officer compensation
- Prepare tax returns
- Advise on compliance matters related to tax-exempt entities
- Provide representation for inquiries, audits and assessments
Call us today to find out more about how private foundations can benefit you.
Private foundations are a form of 501(c)(3) tax-exempt organizations, so you can take a deduction and reduce taxable income at the time you transfer assets, but retain control over the assets until they are put to use for their exempt purpose, even if that period extends port-mortem.