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Establish a supporting
organization.
A supporting
organization may be an alternative if you choose not to establish your
own private foundation but still would like close involvement with grant
decisions. In terms of control by you the donor, a supporting
organization lies somewhere between a private charity and a
donor-advised fund at a public foundation. A community foundation will
often—though not always—be the public charity supported by this type
of organization.
Since the supporting
organization is identified with a publicly supported charity, the donor
enjoys the tax benefits of the public charity. There are three basic
types of supporting organizations, and each option reserves a varying
degree of the supporting organization’s governance for the trustees of
the beneficiary charity. The mission of the supporting organization must
also be compatible with the mission
of the public charity with which it is identified. Creation of a
supporting organization provides a means for the donor to involve family
members in grantmaking decisions, and often provides access to the
program staff of the public charity for assistance with those decisions.
Because of the complex nature of supporting organizations, it is
important that you consult a professional advisor for further
information and guidance.
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NEXT STEPS …
The book titled
Legal Compendium for Community Foundations contains a
helpful chapter on supporting organizations. It is published by
the Council on Foundations (888-239-5221 or www.cof.org). |
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