The Foundation has several options for your giving, including Family Support Organizations, Charitable Trusts and Tribute Funds.
Funded and named by you, a Family Support Organization gives you the flexibility to make grants to specific organizations or fields of interest, both in the Jewish community and the community at large. Learn more in our Family Support Organization Brochure.
It is a separate tax-exempt entity overseen by a board of directors and is classified as a public charity and not a private foundation. As a result, your contributions receive the most favorable tax treatment under the law.
Maximize tax benefits
Minimize legal and administrative burdens
Requires charitable assets of $2.5 million or more
If you're thinking about establishing a private foundation, contact us first. A Family Support Organization—or a Donor Advised Fund—at The Foundation may be your best option. Oftentimes these charitable vehicles are more cost effective and manageable than a private family foundation. Together, we can fulfill your philanthropic vision in a way that best meets your financial and tax planning needs, and involve future generations of your family in philanthropy.
Advantages of a Family Support Organization
Immediate current-year tax deduction
Up to 50% of adjusted gross income (AGI) for cash gifts (compared to 30% of AGI for a private foundation) and up to 30% of AGI for appreciated property gifts (compared to 20% of AGI for a private foundation).
Avoid capital gains tax
Appreciated property gifts are deductible at 100% of fair market value (compared to more limited deductions, in certain circumstances, for a private foundation).
No excise tax on investment income
(Compared to up to 2% in annual excise taxes for a private foundation.)
When it comes to tax advantages, all assets are not created equal
Talk with us or your professional advisor to find out why.
The board of your Family Support Organization, with your input and direction, identifies specific nonprofit organizations or worthwhile projects within a field of interest and recommends grants to support them. Grants may be directed to support any number of causes-in the Jewish community and the community at large-and you may adjust your funding priorities as your charitable interests evolve over time.
Grants administration and oversight
The Foundation handles all administrative responsibilities for your Family Support Organization, freeing you to focus on the joys of giving. Our ongoing administrative support includes the preparation of governance documents, annual tax filings and financial reports. We also verify the nonprofit status of recipient organizations, manage grant distribution and associated paperwork, and facilitate your Family Support Organization's board meetings.
A Family Support Organization determines its own investment strategy, either retaining outside advisors, or investing its assets as part of The Foundation's endowment investment pool. This portfolio is managed by our highly skilled Investment Committee (a group of seasoned professionals who also manage investments totaling [tens of] billions of dollars in their own firms).
Strategic planning services
Our Center for Designed Philanthropy can help you develop a mission statement, learn about innovative funding opportunities, and network with like-minded funders.
Intergenerational family participation
Our Center for Designed Philanthropy can also offer strategies and support for the philanthropic training of your children and grandchildren. By involving the next generation in grant-making recommendations-informally or as members of the board of directors-a Family Support Organization can help ensure that your philanthropic values are passed down through generations.
The specific benefits of a Family Support Organization are influenced by a number of variables such as the donor's age, income tax bracket, size of gift, and type of assets used. Contact our Development Office at (323) 761-8704, or by email for more information.
Cost of Maintaining a Family Support Organization
The cost of maintaining a Family Support Organization through The Foundation is significantly less than that of a private foundation, leaving more of your hard-earned assets for charitable giving. The annual administrative fee schedule for the Family Support Organization's assets is as follows:
1%, but not less than $12,500, on the first $4 million
0.75% on the next $6 million
0.50% on the next $10 million
0.125% on the next $20 million
There will be costs for annual tax preparation and for Directors & Officers Liability Insurance as well. Those expenses will be paid from the Family Support Organization's funds.