They can avoid paying capital gains levies on appreciated property and they can also reap income tax deductions for donations. Family foundations set up through the American Foundation become accounts of the Phoenix group and receive the benefit of its public charity status. In fact, they offer higher tax advantages than private foundations that have not met certain Internal Revenue Service requirements, according to Schaub. For example, donations to a family foundation can be used to offset 50 percent of adjusted gross income, compared with 30 percent for private foundations. Also most deductions can be taken at fair market value rather than at cost.
Donors receive semiannual reports on trust and foundation performance.
The benefits of a setting up a family foundation instead of just giving money to charity are vast. Gives annual support to favorite charities Establishes a family legacy of giving The American Foundation works with individuals, families, corporations, communities and professional advisors to establish charitable foundations and gift plans of all kinds. The American Foundation. All rights reserved.