Supporting Organizations
High
impact, high involvement, low hassle.
A Supporting Organization is an
excellent alternative to a private foundation. You select some
of the board members and support the causes you care about most,
while enjoying the favorable tax treatment, immediate startup,
and ease of administration associated with working through your
community foundation.
You can have a great
deal of control over your grantmaking without the burdens of
operating a separate private foundation. You and future
generations may appoint successor board members to help direct
the Supporting Organization you establish and define its purpose
and mission. Your contributions may yield a greater tax
deduction than those made to a private foundation, and the
Supporting Organization is not subject to other private
foundation rules and regulations, such as paying an excise tax
or making a minimum payout each year. Working through your
community foundation, you have the choice of receiving
recognition or remaining anonymous in your giving.
Several efficiencies
preserve your charitable assets and allow you to make the impact
you desire. The startup and administration is simple and allows
your board to begin issuing grants right away. And through the
years, your community foundation provides local grantmaking
expertise, reporting services, and management of the Supporting
Organization’s assets by investment professionals.
How it works:
-
You make a gift
to the community foundation—you can give cash, appreciated
stocks, real estate, or other assets. We establish a
Supporting Organization—a separate charitable entity—in your
name, in the name of your family or business, or in honor of
any person or organization you choose.
-
You select up to
49 percent of your board of directors; the community
foundation assigns the rest (so that you benefit from
affiliation with a public charity).
-
You receive tax
benefits in the year your gift is made.
-
Your board of
directors recommends grants—working with our professional
program staff—to support the causes and agencies you care
about most. We issue grants to charities in the name of the
Supporting Organization you establish (if you prefer, grants
can be made anonymously).
-
We handle all
the administrative details.
-
Your gift can be
placed into an endowment that is invested and will grow over
time. Grants addressing community needs are made forever.
You can help determine investment strategy for the
organization, get advice from the community foundation, or
leave the details to our professional investment managers.
