PRIVATE FOUNDATIONS AND ENDOWMENTS
PRIVATE FOUNDATIONS AND ENDOWMENTS By Lisa A. Ditkowsky
(and Pllush Capital Management)
Pllush Capital Management and Pllush Capital Management Private Client enjoy working with Private Foundations as a way of furthering a family or business's charitable and tax minimization goals.
It usually takes as little as $250,000 to start a tax-exempt nonprofit in the Unites States. The foundation is usually endowed by an individual or by multiple family members, and these members serve on the Board of Directors of their own Foundations and oversee Investments and Grants.
The IRS permits 98-99 percent of the growth in the Foundation to be tax-free so long as the Foundation makes annual grants of at least 5 percent of the Foundation's account balance. The IRS also allows generous tax deductions in the year the family's gifts are made into the Foundation.
One successful tax minimization strategy that we have seen often is when a family donates highly appreciated equities into their Foundation. Often these equities have a very low cost basis.
As CERTIFIED FINANCIAL PLANNERS™, our goal is to help you expertly manage risk and reward in your Foundation account so that you can fund the causes you believe in for generations to come. Whether you have an existing Foundation that is not meeting the nonprofit's annual investment goals or whether you need help getting a brand new foundation funded, Pllush Capital Management can guide you through the exciting process of gaining incredible tax benefits form your foundation and doing immense good for the organizations you want to support.
We have seen many sizeable Foundations not adhere to their Investment Policy Statements and failing their Mission Statements. Our Pllush Capital Management Private Client department can offer no-cost detailed Investment Analysis and offer strategies to grow your Foundation. We can evaluate your portfolio as relates to your mission statement.
Are you just contemplating shifting personal and/or estate assets into your own tax advantageous Foundation? Does your foundation simply need our firm's fresh, objective opinion? Please do not hesitate to call us and learn about our work with growing Foundations.
Unlike other types of gifting vehicles with tax benefits, you retain the control with your Foundation. For those with the means to have their very own Private Foundation, this ability to retain control should not be overlooked.
A Family Foundation can be a great way to bring together heirs from around the country to all have a say in the intergenerational wealth transfer plan.