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A supporting foundation functions very much like a private
family foundation, but because it is aligned with The Jewish
Community Foundation, you 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 you and your family. Each supporting
foundation has its own board of directors made up of individuals
whom you select, as well as members selected by The Jewish
Community Foundation. Because both groups of directors continue
to elect their own successors, a supporting foundation can
exist in perpetuity, providing a significant means of involving
your family in enlightened philanthropy for generations.
Professional support
Your supporting foundation has access to The Jewish Community
Foundation's research on community needs, as well as their
assistance in selecting grant recipients. You 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 your family become more strategic and focused in its
charitable pursuits. We will provide professional staff to
help you and the board of your foundation review grant proposals,
prepare all necessary federal and state tax and legal filings,
and will assist with general administration of your 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, you 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.
At-A-Glance:
- Provides tax benefits not available with private foundations
- Is not subject to excise taxes on investment income
- Is free from restrictions on investments and minimum distribution
requirements which apply to private foundations
- Offers ability to make recommendations concerning grants,
investments and management
- Involves younger generations in philanthropy
- Avoids administrative burdens inherent in private foundations
Converting from a private family foundation
If you have 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.
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