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HighHeat
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 Posted: 12/01/04 - 11:39 Post subject: Starting a Foundation...
Is it possible to start a foundation if I don't have any money of my own to fund it?
I'm at the earliest point of brainstorming about this, so I only have a narrowed down list of which issues I'd like to fund, but in general, do you need a chunk of your own cash to slap down for something like this? Any other ideas on what might be required?
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TriBob
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Posted: 12/01/04 - 11:41 Post subject:
I would assume you need a small amount of money to set up a 501(c), bank accounts etc.
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Gogirlgo
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Posted: 12/01/04 - 11:42 Post subject:
Well, the main thing that's required to keep you 501c3 status is that you give away 5% of the assets every year. So yes, you need some cash.
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HighHeat
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Posted: 12/01/04 - 11:43 Post subject:
| Gogirlgo wrote: | | Well, the main thing that's required to keep you 501c3 status is that you give away 5% of the assets every year. So yes, you need some cash. |
But does it have to be mine or can I get donations/funding to start it off?
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jrjo
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Posted: 12/01/04 - 11:47 Post subject:
As a "private" foundation, you do need an endowment of some sort to get the correct tax-exempt status. Private foundations can solicit only a small percentage of their monies. You would definitely need the "chunk of cash" to begin.
On the other hand, "community" foundations do solicit funds from various places. In fact, the tax rules are such that they must keep from getting too much money from one source, or risk slipping into the more restrictive private foundation status.
I'm guessing whatever community you are in, there is already an existing community foundation. Look them up and offer to volunteer on some of their committees or even their board of directors. Or if you do have some monies but not really substantial, you can set up a 'donor advised fund' at the community foundation and you as the donor have the say where the monies get distributed to.
It would really be re-inventing the wheel to strike out on your own unless you have some monsterous estate to perch on. Check out the local community foundation scene. I expect you'll find a mittful of people already doing the things you're thinking about.
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Gogirlgo
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Posted: 12/01/04 - 11:50 Post subject:
| HighHeat wrote: |
But does it have to be mine or can I get donations/funding to start it off? |
I don't think anyone cares whose money it is initially. Lots of people have family foundations, and that's b/c they have extra cash they'd otherwise be taxed on so they do this charitable thing and get the write-off. If you're talking about beginning a foundation around a particular organization, you can get funding for that. For example, Pew Charitable Trusts is a huge organization. If they think something is particularly worthy, they may want to fund it and really support it on their own, but sometimes they might see that something is worthwhile enough to fund but they might not want to oversee it. Look at their website. http://www.pewtrusts.com/
Edited to say, when I said that whose money it is initially doesn't matter, I was thinking about a smaller, family foundation. Jrjo is right.
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