Connecticut Toolkit for Giving

 

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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.

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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