PRIVATE FOUNDATIONS
Foundations are non-profit legal entities that make charitable grants or run charitable activities or organizations they fund with their investment income. Some foundations do a combination of the two. The donor typically retains full decision-making authority over granting and the foundation's operations.
The donor receives an income tax charitable deduction for assets that are contributed to the foundation. Generally, 5% of a foundation’s assets must be granted each year for charitable purposes. Their grantmaking activity is a matter of public record. In addition, foundations are required to file informational returns to the IRS.
The assets in a foundation are typically invested to generate additional funds for future grants. The investments made by private foundations must not put at risk the execution of the organization’s exempt purpose. The expenses and assets spent by a private foundation must be towards their charitable purposes.
Whether you’re just getting started with your private foundation or your foundation has been in the family for generations, you might find yourself in need of some expert counsel and practical guidance. Get more out of your foundation—more satisfaction, more rewards, more impact with RJM Advisors LLC. We provide consultative services for Not-for-Profit clients.
These services include:
This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.
The donor receives an income tax charitable deduction for assets that are contributed to the foundation. Generally, 5% of a foundation’s assets must be granted each year for charitable purposes. Their grantmaking activity is a matter of public record. In addition, foundations are required to file informational returns to the IRS.
The assets in a foundation are typically invested to generate additional funds for future grants. The investments made by private foundations must not put at risk the execution of the organization’s exempt purpose. The expenses and assets spent by a private foundation must be towards their charitable purposes.
Whether you’re just getting started with your private foundation or your foundation has been in the family for generations, you might find yourself in need of some expert counsel and practical guidance. Get more out of your foundation—more satisfaction, more rewards, more impact with RJM Advisors LLC. We provide consultative services for Not-for-Profit clients.
These services include:
- Serving as Trustee/Co-Trustee for charitable trusts/private foundations
- Assisting new and established clients in establishing policies
- Developing vision and mission statements
- Developing strategic plans and grant guidelines
- Evaluating best practices and successes
- Creating collaborative philanthropy policies
This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.