The continuity and options of a private foundation, with increased tax benefits and decreased administrative burden
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.
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.
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.