A Private Charitable Foundation
Your Key to Significance and Much More
Happiness is
multiplied when prosperity is shared by giving to others.
“Own nothing and control everything.” John
D. Rockefeller
The private
family foundation is a proven tool to assist families in their journey of
success and significance. A family foundation so organized and committed
will undoubtedly move beyond success and achieve the joy of significance.
Philanthropy
Philanthropy probably acquired its modern meaning "the disposition to
promote human well-being in general" because of the influence of
Christianity and its emphasis on the universal love of neighbor or charity,
a term often used as a synonym for philanthropy. Charity, in early English
usage, meant Christian love "both God's love for man and man's love for both
God and his human neighbor, friend and foe alike. Even when secularized,
charity meant love, kindness, and a feeling of benevolence toward one's
neighbors, as well as the practical beneficence that issues from this
feeling: charity as alms-giving or as public poor relief. Thus, "a charity"
became any bequest, foundation, or institution established for the benefit
of others, especially of the poor or helpless, hospitals, asylums, homeless
shelters, and charitable trusts for health, education, and welfare.
Christian
charity is clearly the ancestor of charity as the compassion-driven
distribution of money and services to the needy. For unlike our natural
loves, which are inspired by the beautiful or the virtuous, Christian love
is unconditional and unmerited. Indeed, it stands out for its capacity to
love naturally unlovable, not only the poor, the weak, and the deformed,
but even the wicked and vicious. Though, one imagines, God's love for man
goes beyond His wish to relieve poverty or to cure illness, it is no
accident that charity, both Christian and secular, has come to mean
primarily benevolence and beneficence toward the lowliest among us. If this
is the heart of charity, and if charity is regarded as synonymous with
philanthropy, we can easily see why compassionate humanitarianism comes to
be seen as philanthropy's proper guiding nerve
Choice...You Have
One.
Stewardship may very well be defined as choice based on the notion that
there are inherent principles attached; namely, accountability,
responsibility and trust. Principle driven choices enhance and propel one's
pursuit of happiness. One of the greatest gifts given to humankind is the
sovereign right to choose.
The private
family foundation is a tool that invites decision making based on a higher
law. Charity is more than merely being a giver or grant-maker. Charity is
a matter of the heart. There is depth and reality to charity that has the
ability to transform individuals, families, communities and nations for the
betterment of all humankind. The more choice we have the
greater possibility of growth and accomplishment.
The opportunity is now. The cost of doing nothing is far greater than doing
something. It is a choice that only you can make. It is a choice to move
beyond success and live significance.
Learn the do's
and don'ts of the family foundation while transforming your life from a mind
set of buy-sell to give-receive. You and your family have a mission...make
it a reality.
Family
Foundations for the Ministry
Charitable
giving can be one of the most satisfying and rewarding experiences you do in
your life. In the information provided, it is our intent to give you an
understanding of the benefits and advantages of a private family foundation.
With a one day workshop and on going education, We look forward to helping
you achieve your (well thought out) charitable plan, family, and financial
goals.
What is a private family foundation?
A private family foundation is defined as an entity that is established
as a nonprofit corporation or charitable trust, with a principal purpose of
making grants to unrelated organizations or institutions or to individuals
for scientific, educational, cultural, religious, or other charitable
purposes.
The most
common distinguishing characteristic of a private foundation is that most of
its funds come from one source, whether an individual, a family, or a
corporation. Private family foundations are also identified by their formal
determination letter. The tax laws for a private family foundation include
a minimum distribution requirement, an excise tax on investment income, and
a limit as to the proportion of for-profit enterprise they may own. Private
family foundations must make "qualifying distributions" of at least 5
percent of the average market value of their investment assets in any given
fiscal year by the end of the following year.
The excise tax, normally 2 percent of net investment income, or 1 percent
in special circumstances, counts as a credit toward the 5 percent minimum.
Do I qualify
financially for a Family Foundation?
As much as we would all like to participate in charity, the family
foundation does require some economic reflection. If you experience any of
these economic situations, you are an ideal candidate to have your own
Family Foundation.
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Do you
currently give to charity?
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Do you have the
income to set aside for charitable giving?
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Do you have
income with a tax burden?
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Do you need a
secure and prosperous retirement plan?
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Do you need a
secure and prosperous estate plan?
Benefits of the
Family Foundation
There are substantial financial and personal benefits that relate directly
to the creation and establishment of your family foundation. Here are just
a few:
IMMEDIATE
INCOME TAX SAVINGS
� Generally, you will be able to reduce your personal income tax liability
by up to 30%. You would do this by transferring up to 30% of your pre-tax
income to your foundation as a donation. Of course, you may transfer a
smaller percentage and get the corresponding smaller tax benefit.
Receiving an immediate tax deduction from donating to your foundation
causes an immediate increase in assets. For example, if your W-2 wage
income is $100,000 and you are in the 28% income tax bracket, donating
$30,000 to your foundation creates a tax savings of $8400 that stays in
your pocket. You would only pay $19,600 in taxes. Without the foundation
alternative you would have paid $28,000 in taxes.
“The legal
right of a taxpayer to decrease the amount of what otherwise would be his
taxes, or altogether avoid them, by means which the law permits, cannot be
doubted.” Helvering
v. Gregory, Supreme Court, 1935.
TRANSFER TAX
LIABILITY ON HONORARIUMS AND LOVE OFFERINGS
Your honorariums and offerings can now be tax exempt when received by
your Family Foundation. Rather than you personally receiving a direct
honorarium or offering, the gifts can be donated directly to your family
foundation. Assets donated to the foundation are not subject to gift or
estate tax and will increase tax free. Not only does this provide a
tax-free environment for honorariums and offerings, but those who donated
the gifts just created a tax-deductible event for themselves as well.
LUCRATIVE
RETIREMENT ALTERNATIVE
Over
time the advantage of the family foundation increases because the
foundation is not subject to tax. Research and recent studies show that
most foundations did not start out as the representation of a central
family value of charity; that came later. In fact, in most cases, the
foundation was formed strictly for tax minimization. But once in
existence, the foundation becomes a vehicle for a whole range of family
charitable agendas. Private family foundations pay only a 1 to 2% excise
tax on investment income. Consider the honorariums, offerings, and
financial investments during your working years that would accumulate tax
free with a minimal 1 to 2% excise tax on investments. For example:
honorariums in the $15,000 per year range can grow tax free as opposed to
the current 15% income tax rate for personal income. That would reduce
the income tax on your annual honorariums by $2,250 each year. Over a
twenty year period, that's an additional $45,000 that you can have working
to build your family foundation.
Honorariums of $50,000 annually can result in a cumulative tax savings of
$150,000. Any honorarium or offering donation can make a substantial
difference. High interest investments can grow and accumulate tax free
with a minimal 1 to 2% excise tax on investment returns versus a 15% tax
rate for individuals. Less than 1 cent on the dollar is more than an
eight fold difference compared to 15 cents on the dollar.
LEGACY
The commitment to family and to something larger than
family supports the decision to create and sustain a family foundation.
Charity is a dynamic principle with a purpose. Charity reflects optimism,
trust and a sense of community. When a family establishes a foundation,
the entity that they have created takes on its own identity. It is a
legal entity that will likely exist well beyond the lifetime of the
original donor.
Understanding your family foundation begins with understanding your family
in general. This is the way in which families exemplify who they are and
how they see their purpose. This is family dynamics in action. The
clarion call is clear. Families so organized are forever families.
In Closing
If you desire to
preserve and self direct wealth, consider establishing a Private Family
Foundation today.
If you are
anticipating a future tax burden you are potentially wasting precious social
capital.
There are two
types of social capital: "involuntary" and "voluntary".
A private family
foundation allows you to get a full tax deduction today by self directing
social capital. A redirection of involuntary social capital to voluntary
social capital is all about control. With a private family foundation you
regain absolute control of social capital and directing its best use we
specializes in financial information that was perceived only available to
the elite or wealthy. Now through our unique and exclusive educational
system every day working families can enjoy the same benefits and security
only available to the informed few. We makes it possible for families to
establish and manage their own private foundation
We invite you to
establish your own private family foundation for the many powerful benefits
of your family's financial future and a life of philanthropy. Your private foundation provides
you a perfect opening to move from success, achievement and
sufficiency, to significance.
For
more information
Taking Back Your Power
by Allen Aslan Heart
WHAT CAN YOU DO? Stop playing THEIR game. Take back
your power. Stop paying taxes that are not legal or lawful. Stop paying
bills you don't really owe. Stop using THEIR money. There ARE ways if you
open your mind and look for the gaps in their fences that keep the sheeple
in their pasture. Are you chattel or a real person? You are the one who
makes that choice.
