Private Operating Foundations: The “Hands-On” Approach to a Charitable Legacy
Author: Richard Horwood.; Kenneth Goldstein.; Chelsey Ziegler.
Source: Volume 13, Number 05, July/August 2014 , pp.3-5(3)
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Abstract:
An increasing number of affluent individuals and families are realizing that they may want their charitable foundation to do more than simply write checks to public charities. An important but often overlooked alternative is to establish a private operating foundation; this is an ideal fit for charitably inclined donors who desire maximum control over their contributions, a deeper tie to the impact of their charitable efforts, and maximum tax benefits. This article explores why a private operating foundation may be the best approach to accommodate a donor’s philanthropic goals.Keywords: Public v. private charitable foundations; IRC §4942 distribution rules; Form 1023 Application for Exemption; ; income test
Affiliations:
1: Horwood Marcus & Berk Chartered; 2: Horwood Marcus & Berk Chartered; 3: Horwood Marcus & Berk Chartered.