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The Advised Family Foundation
The simplest model of family foundation available to a donor
today is the Advised Family Foundation. This foundation model has
public charity status due to its design as a separate component fund or
foundation “account” within a host charity, such as Family Legacy
Fund. Gifts to these foundations receive the maximum available tax deduction
for the donor and the family. The donor may nominate a financial advisor
to manage the account assets, which may result in your charitable gift
growing beyond the original contribution.
At Family Legacy Fund, Advised Family Foundations are run as endowment
funds that will exist for one or two lives or a term of years chosen by
the donor. Each year the donor and family may advise Family Legacy Fund
to distribute the income from their Advised Family Foundation to their
favored charities. Because of Family Legacy Fund’s commitment to
the welfare of children, the only requirement it imposes on the choice
of charities receiving support from the Advised Family Foundation is that
those charities must enhance the health and well-being of children in
some manner. Because this requirement is very broad, there is still great
flexibility in recommending the charitable causes that will benefit from
your foundation. In addition, your family will not have any of the responsibility
for the administration of the fund.
The leaders of Family Legacy Fund have designed these Advised Family Foundations
to allow the donor and the donor’s family a great degree of flexibility
and control allowable under current tax regulations. However, in order
to remain in full compliance with the current tax code, it is important
to note that all gifts to one of these accounts are deemed irrevocable
and will be administered as assets of Family Legacy Fund. Donors have
the right, however, to recommend which charities or special interest areas
receive the annual distributions.
To set up your advised family foundation, please review our
policies and procedures and fill out the application
form and philanthropic interest
sheet.
For more information on Advised Family Foundations, please call Family
Legacy Fund at 510-428-3362 or email
alee@mail.cho.org
* THIS IS NOT LEGAL ADVICE. ANY PROSPECTIVE DONOR SHOULD SEEK THE ADVICE
OF A QUALIFIED LEGAL, ESTATE AND/OR TAX PROFESSIONAL TO DETERMINE THE
CONSEQUENCES OF HIS/HER GIFT.
