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The foundation of your personal philanthropic legacy

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.

Donor-Advised Fund

Supporting Organization

Private Foundation

Legal EntityIncorporated into Jewish Federation of Greater Atlanta’s 501(c)(3) statusMust establish 501(c)(3) status through IRSMust establish 501(c)(3) status through IRS
Tax StatusPublic charityPublic charity through affiliation with Atlanta Jewish FoundationPrivate foundation
Tax Deductibility of Donations – Percentage limitations of AGI60% cash / 30% long-term appreciated property60% cash / 30% long-term appreciated property20% long-term appreciated property
Amount DeductibleFMW – publicly traded securities / FMV – other appreciated propertyFMV – publicly traded securities / FMV – other appreciated propertyFMV – publicly traded securities / Cost basis – other appreciated property
Taxes paidNoneNone1.39% excise tax on net investment income, possible penalty taxes
Tax Returns, States & FederalNoneFederal 990 filed by Atlanta Jewish FoundationFederal 990-PF filed by private foundation at their own cost
Annual Payout RequiredNoneNoneApproximately 5% of average value
GovernanceAdvise as to grants, investment and successionBoard of Directors with majority of directors appointed by Atlanta Jewish FoundationBoard of Directors chosen by private foundation
Accounting, Audit, IRS Compliance, tax exemption, grants management, investment management, insuranceAtlanta Jewish Foundation handles all administrative functions, outside investment managers allowedAtlanta Jewish Foundation can handle all mattersMust establish insurance, investment, grants, management, accounting and audit systems at own cost
AssetsMay hold real estate, privately- held and other illiquid assetsMay hold unusual assets; e.g. real estate and closely held business stockSome restrictions depending on type of assets held
Excess Business Holdings limitationsYesNoYes
Knowledgeable StaffStaff provided by the FoundationStaff provided by the FoundationMust employ and manage private staff
Fees, Expenses, Minimums to OpenAnnual administrative fee of $250. Annual asset management fees run from .05-1%.Negotiated feeCan be up to 5% of assets
Primary AdvantagesDeductibility; nonprofit knowledge of staff, flexibility, permanence, no administrationDeductibility, separate board, family identity, can be programmatic, more apparent control, ability to hire staffControl, independence, family identity, employment of children
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