An extremely popular and effective means to create a legacy to his community is using the recommended donor funds. It is a charitable fund set up on a foundation of community. It is an alternative to a family for those unwilling to assume responsibility for the Administration, the potential liability, record keeping and the lack of Privacy Foundation. Since recommended donor funds are configured and managed through community foundations, a good place to start this post would be a definition and a discussion of community foundations.
What is a Community Foundation?
A Community Foundation is a public charity organized under the internal revenue code.Usually configured to serve a geographical area específica.Principios basic community provide grants to a number of different charitable organizations in your area of service. Instead of focusing on a charitable cause, a Community Foundation devotes himself to serve the wide variety of needs of their community and donors.
Basic principles of the community are configured as allocations and subsidies given by her come exclusively from revenue allocations. Many of the basic principles of the Community limit the amount of subsidies can provide every year a specific percentage of the identity of staffing. In this way, the staffing remains stable during times of market volatility.
The establishment of a Fund recommended donor would donate a sum of money or property to the foundation of the community as a permanently endowed fund. Each year revenue from its fund would be available to help charitable organizations or cause in the community. You and your family are allowed to direct or advise how subsidies should be allocated annually.
Comparison with basic principles of the family.
1. The donor control. Basic principles of the family and recommended donor funds provide the donor with different levels of control in the selection of grantees. With a recommended donor Fund, you and your family, as the donor, recommendations can be advice to the Community Foundation of who has the final authority to select recipients.
It has a full selection of grantees (subject, of course, the requirements of the IRS) If you create a family Foundation control. Founder it can create your own Board, they have a wide range of investments and absolute discretion in recipients. Basic principles of the families enable you the full range of flexibility and control.
2 Set up costs. Recommended donor funds are much less expensive to create family foundations.Basic principles of the families require the formation of an entity, a corporation non-profit or in a relationship of trust, with all appropriate legal fees and costs of the presentation.Recommended donor Fund creates the foundation of the community, and in most cases, you can configure a single agreement.
3. Log management and maintenance.Management, record keeping and tax reporting for a recommended donor fund is provided by the community of usually Foundation in an annual fee (1% less than the balance of the Fund).A family Foundation Board is responsible for the administration of the foundation of the family, but they may retain outside management services.
4. The charitable tax deductions.With a recommended donor Fund, are deductible in the maximum rate of cash contributions (up to 50% of donors adjusted income gross "Ajustado").The basic principles of the family tax deductions are limited to up to 30% of the AGI.Las contributions to funds recommended donor securities and other assets such as property estate will receive a charitable total.Con market value tax deduction basic principles of the family, deduction of securities is based on market total.Sin value however, for other prized, goods as goods roots, the deduction is limited to cost basis of the donor in the property.
5 Excise impuestos.Principios basic of the families have to pay taxes on annual consumption of 2% in net income of the inversiones.Fondos recommended donor tax are not subject to this tax.
For people with smaller farms, or those that do not require control over the concession in the process, a recommended donor fund is an attractive alternative.
Recommended donor funds provide much more privacidad.Debido to the necessity of filing taxes and reporting with the foundation of the family, is easier for people to find out the identity of donors and how much money an individual to a recommended donor fund contribution contribuyen.Cantidad is not publicly available.
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