What is a family foundation?
Large property interested in philanthropy can consider creating a private family foundation. This type of organization is based on one or more large donations from private property. The Family Foundation is a non -profit organization with a mission to donate money for a recognized charity organization. The reasons for establishing a private family include the creation of a family heritage, avoiding tax on large capital revenues and promoting philanthropic goals, among other things. Property planning concerns these measures taken to help maintain the assets and income of a person or family. Real estate tax can be lost a large amount of money after the death of a person of wealth. In the US, this money gives the federal government to the federal government. Before death, the person should plan the assets and income of their property to maintain the greatest wealth. In addition, assets that have great value values can be devoted to a non -profit organization and the resulting capital gains can be founded instead of taxable incomefor asset owners.
In the context of current tax codes in the US, the gifts provided by non -profit organizations are eligible taxes, which means that a person can donate a private family foundation and then deduct this amount from their taxable income. This creates a way to protect a person of wealth and at the same time creates a family legacy. The foundation is usually named for the person who gave him the most money. For example, the Bill and Melinda Gates Foundation is a private family foundation named Bill and Melinda Gates. They donated enough money to determine the permanent trust, which every year devotes a large amount of money to non -profit organizations, and developed a legacy with their name and gifts.
Family Foundation can also be a way to involve family members in charity work. According to US tax laws, a private family foundation must only pay 5% of its annual returns to charity work. The rest of the moneyIt can pay salaries for friends and family members to develop philanthropic efforts of their primary occupation. However, they must prove that they earn this money by keeping records of all their charity work.
Person responsible for the family foundation is usually a person who given, Executive Director appointed by this person or Board of Directors. If there is a board of directors, there must be the Chairman of the Board of Directors who will lead others to monitor assets and control that receive gifts. By appointing the right person or persons in these jobs, the estate owner can maintain some control of non -profit organizations that will receive charity.