Unlike a private foundation, a Supporting Organization is a less restrictive charity, with a board and a staff who work together with the Atlanta Jewish Foundation to enable your mission and vision for your philanthropy. And since a Supporting Organization (sometimes called a Supporting Foundation) is classified as a public charity, your contributions receive a more robust tax benefit. A Supporting Foundation may be a family-type foundation or can be created to support a specific program.
The charity’s board will be made of individuals who are appointed by the family as well as members of the community who are appointed by the Foundation and your family together. The ultimate goal of forming a board is to identify and include people who can best assist in supporting and executing your philanthropic goals.
Combining powerful and effective giving with smart tax planning and the involvement of future generations, a Supporting Foundation truly is the foundation of your personal philanthropic legacy.
|Legal Entity||Incorporated into Jewish Federation of Greater Atlanta’s 501(c)(3) status||Must establish 501(c)(3) status through IRS||Must establish 501(c)(3) status through IRS|
|Tax Status||Public charity||Public charity through affiliation with Atlanta Jewish Foundation||Private foundation|
|Tax Deductibility of Donations – Percentage limitations of AGI||60% cash / 30% long-term appreciated property||60% cash / 30% long-term appreciated property||20% long-term appreciated property|
|Amount Deductible||FMW – publicly traded securities / FMV – other appreciated property||FMV – publicly traded securities / FMV – other appreciated property||FMV – publicly traded securities / Cost basis – other appreciated property|
|Taxes paid||None||None||1.39% excise tax on net investment income, possible penalty taxes|
|Tax Returns, States & Federal||None||Federal 990 filed by Atlanta Jewish Foundation||Federal 990-PF filed by private foundation at their own cost|
|Annual Payout Required||None||None||Approximately 5% of average value|
|Governance||Advise as to grants, investment and succession||Board of Directors with majority of directors appointed by Atlanta Jewish Foundation||Board of Directors chosen by private foundation|
|Accounting, Audit, IRS Compliance, tax exemption, grants management, investment management, insurance||Atlanta Jewish Foundation handles all administrative functions, outside investment managers allowed||Atlanta Jewish Foundation can handle all matters||Must establish insurance, investment, grants, management, accounting and audit systems at own cost|
|Assets||May hold real estate, privately- held and other illiquid assets||May hold unusual assets; e.g. real estate and closely held business stock||Some restrictions depending on type of assets held|
|Excess Business Holdings limitations||Yes||No||Yes|
|Knowledgeable Staff||Staff provided by the Foundation||Staff provided by the Foundation||Must employ and manage private staff|
|Fees, Expenses, Minimums to Open||Annual administrative fee of $250. Annual asset management fees run from .05-1%.||$10,000 annual administrative base fee + 25 basis points (.25%) asset fee. A minimum $1 million is needed to open a supporting organization.||Can be up to 5% of assets|
|Primary Advantages||Deductibility; nonprofit knowledge of staff, flexibility, permanence, no administration||Deductibility, separate board, family identity, can be programmatic, more apparent control, ability to hire staff||Control, independence, family identity, employment of children|