A Foundation for Philanthropic Purposes
Should you have a well-established business that has helped you become financially well off, you may be looking for ways to give back to your community, such as setting up a charitable foundation. Before focusing on your new venture, make sure that your business can continue on a sound footing while your attention is divided. You might also like to speak to the agent who assists with your California business insurance about any insurance that might be required for your charitable venture.
Establishing a foundation for a local charity may be a good way to serve the community that has contributed to your financial wellbeing. A foundation is defined by the IRS as a non-profit corporation which qualifies as a tax-exempt charity. Donations to a foundation are tax deductible for the giver, which makes it a little easier for the philanthropist to raise funds for the charity.
Forming a foundation requires incorporation first, followed by an application submitted to the IRS for 501(c) or non-profit status. Once the charity status is approved, the foundation must comply with legal requirements, such as timely board meetings with accurate minutes and regular audits of corporate finances to assure compliance with IRS codes.
There is much involved in setting things up correctly so you might find yourself calling on your accountant and lawyer for assistance or advice. Your California business insurance agent might prove helpful too in advising on insurance matters.