While a supporting foundation qualifies as a public charity with all attendant tax benefits, it has many of the advantages of a private foundation, such as personal involvement in grantmaking and the option to create a specially tailored investment strategy. It may be focused on the donor’s special interests.

Advantages:

• Can continue in perpetuity, allowing family members to work together toward their goals from generation to generation
• More favorable tax treatment than private foundations, especially for gifts of securities and appreciated property
• Fully fundable during one’s lifetime or minimally now with added gifts from an estate
• Not subject to excise taxes
• Board of directors with donor representation
• Separate investment strategies may be adopted
• No annual minimum distributions required
• Professional assistance in grantmaking (See Grantmaking Strategies For Trustees of Family and Supporting Foundations)

Limitations:

• Generally requires a minimum $1 million in assets to establish during one's lifetime or through an estate

Best assets:

• Cash
• Appreciated stocks and bonds
• Israel bonds
• Closely held businesses
• Real estate
• Testamentary retirement plan assets

For more information contact:

• Lisa Gurwitch at 415.512.6221 or lisag@sfjcf.org
• Jennifer Gorovitz at 415.512.6215 or jenniferg@sfjcf.org