Donor is eligible for the more favorable rules on tax deductibility that apply to public charities. Generally requires large initial contributions to cover the costs of establishing and operating the foundation. Start-up costs are usually minimal, thus large contributions are not necessary to cover the administrative costs. Administrative and compliance requirements are extensive. Administrative and compliance requirements are less extensive.
Tax laws contain clear rules governing their operation.
Lack of clear rules governing their existence. The material in this article was adapted from PPC's newly revised Guide to Tax Planning for High Income Individuals . See that publication for more on this topic. Practitioners Publishing Company. All rights reserved.