Tax Benefits of a Private Foundation


Categories: Starting a Foundation Advisors

Search Topics: Tax Planning for Individuals

In addition to the many philanthropic and charitable reasons a donor might have for establishing and funding a private foundation, there are also short-term and long-term tax benefits to consider. A donor may be able to take advantage of three main tax benefits when he or she gives to a private foundation:

1. Reducing the donor’s income tax for each year in which a contribution is made;
2. Avoiding capital gains taxes depending on the characteristics of property contributed; and
3. Reducing or eliminating potential estate taxes.

Learn more in this informative article, which includes sample donor scenarios.

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