Do you want to learn how to start a private foundation? Private foundations can provide significant benefits to individuals, families, and companies, if operated correctly. They also provide tax benefits to taxpayers and enable them to build a long-lasting tradition of charitable giving.
Generally, a Private Foundation Has 4 Characteristics:
- It is a charitable organization;
- It is initially funded from one source (usually an individual, a married couple, a family or a business);
- Its ongoing income derives from investments (in the nature of an endowment fund); and
- It makes grants to other charitable organizations rather than operating its own program (except in the case of a private operating foundation).
This Primer Will Help You:
- Educate yourself about various charitable vehicles.
- Determine the type of private foundation.
- Structure the foundation.
- Establish your foundation with the state.
- Obtain an Employer Identification Number.
- Apply for tax-exempt status with Federal and State governments.
- Operate the private foundation in accordance with the law.
Whatever your situation, this primer offers valuable information about advantages and disadvantages of starting a private foundation and when to seek legal and professional assistance during the process.
How to Start a Private Foundation Table of Contents
l. EDUCATE YOURSELF ABOUT VARIOUS CHARITABLE VEHICLES
ll. DETERMINE THE TYPE OF PRIVATE FOUNDATION
lll. STRUCTURE THE FOUNDATION AS EITHER A CHARITABLE TRUST OR A NONPROFIT CORPORATION
lV. ESTABLISH YOUR FOUNDATION WITH THE STATE
V. OBTAIN AN EMPLOYER IDENTIFICATION NUMBER
Vl. APPLY TO THE IRS FOR TAX-EXEMPT STATUS
Vll. REGISTER AND APPLY FOR EXEMPTION WITH THE STATE
Vlll. OPERATE YOUR PRIVATE FOUNDATION ACCORDING TO THE LAWS