If success has been part of your journey in life there are many ways to give back and say “thank you.”
To achieve your success you were probably had help along the way. As you look to the future, perhaps you want to help those that will come after you.
One of the ways to help is through a private foundation.
A private foundation is an independent legal entity established for charitable purposes. A private foundation is not a public charity, which relies on public fundraising to support its activities. The funding of a private foundation typically comes from a single individual, a family, or a corporation, which then receives a tax deduction for donations.
There are many private foundations. For example, some of the names of foundation you will have heard of includes ‘The Bill and Melinda Gates Foundation’, the J. Paul Getty Trust, and Habitat for Humanity.
A private foundation is a very specific and distinct type of charitable foundation and is distinct from a public charity.
Both public charities and private foundations are classified as tax-exempt, 501(c)(3) organizations by the IRS. However, the major difference between a private foundation, like The Bill and Melinda Gates Foundation, and a public charity, like the Make-A-Wish Foundation, is where they derive their financial support.
Because a private foundation stays under your control of the donor, you get to determine many things including:
- The foundation’s mission;
- The members of the foundation board;
- Where and how the funds are invested; and
- How and where funds are given away.
Additionally, as the foundation can be set up with the intent to exist in perpetuity, your charitable giving through your private foundation can continue as long as your foundation exists. In this way, it can become a living family heirloom that’s passed from one generation to the next.
With courtesy of Foundation Source, here are 10 things you can do with your private foundation.