Want more control over your Finances???
Private Foundation versus a TrustPrivate Foundations are rapidly displacing Discretionary Trusts as the preferred instrument for modern tax planning. Both options are very similar in nature but the Private Foundation is a more flexible and easier choice to manage. Since the Private Foundation is an independent legal entity, any assets granted to it are solely and exclusively managed by the foundation. Because the Private Foundation is a not-for-profit entity, there are guidelines and rules that govern how the assets may be leveraged or disposed of. Still, a Private Foundation is able to engage in various commercial activities provided the profits are allocated to promote the foundation’s designated purpose. A Private Foundation can also serve as a “holding company,” owning shares in another company which may, in its own right, conduct trading activity. Profits derived in this manner must also be earmarked for the foundation’s objectives.
Level of ControlMany people opt to create a private foundation because they have significant control over how the foundation operates at almost every level. The most critical aspects are related to funding and disbursement. A one-time grant can provide a foundation with the ability to achieve short-term goals or, if the grant is large enough and properly managed, operate indefinitely. Regular gifts, grants contributions, fund raising or any combination of these funding methods, can also be used to accomplish a foundation’s objective. How funds are spent is open to the desires and decisions of the foundation’s controlling body, whether it is an individual or group. Funds can be directed to specific causes or focused on more specific areas such a research into a particular cause the foundation has determined is underfunded or overlooked.
The Advantages a Private Foundation ProvidesA private foundation provides a lot of advantages not only to the donor but, also to friends, family and the community. Focusing specifically on the benefits realised by the donor, there are four important reasons to set up and run a Private Foundation:
READ MORE AT F.A.Q PRIVATE WEALTH FOUNDATIONS