SUPPORTING FOUNDATIONS of the Jewish Community Foundation provide unique vehicles for family involvement in philanthropy as an attractive alternative to a private foundation. Your family’s collaboration in management and grant-making provides continuity and supports your philanthropic goals. A Supporting Foundation is a separate, nonprofit corporation with its own identity and corporate structure.
How Does It Work?
With the help of the Jewish Community Foundation experts, you set up a separate foundation with its own legal identity and name. Your Supporting Foundation has the status of a public charity under Section 509(a)(3) of the Internal Revenue Service code. Your Supporting Foundation is governed by a board of directors chosen by you and your family and by the Jewish Community Foundation (which appoints a majority of the directors). The board of the Supporting Foundation makes grants pursuant to your directions as set forth in the by-laws.
The staff of the Jewish Community Foundation manages the daily operations, carrying out the approved action of the board of trustees. This governing board meets at least annually to discuss grant-making and investments as well as any other policy or operations issues. The Jewish Community Foundation prepares and files tax returns on behalf of the Supporting Foundation.
The Foundation staff carries out the approved actions of the Supporting Foundation’s board of trustees, distributing grants and overseeing the process.
What Are The Benefits?
- You are entitled to cash contribution deductions of up to 50% of your contribution base (versus 30% for a private foundation) and appreciated property deductions of up to 30% (versus 20% for a private foundation).
- Contributions avoid capital gains on gifts of appreciated property or securities.
- Unlike a private foundation, your Supporting Foundation pays no excise tax on investment income. The Supporting Foundation pays no income tax.
- The Jewish Community Foundation handles all of the administration, tax reporting and grantmaking review and oversight of the Supporting Foundation.
- You can terminate an existing private foundation but retain a role in the operation of a charitable fund, eliminating the restrictions and taxes associated with the former private foundation.
- You receive a charitable income tax deduction for all contributions to the Supporting Foundation.
- You receive the full professional expertise and operational support of the Jewish Community Foundation, including access to professional investment managers we engage.
- You and your family play a direct, ongoing role in a charitable fund that continues your commitment to the community.