Is it time to consider establishing a corporate charitable foundation?

Wynn Shepard Corporate Giving

Is it time to consider establishing a corporate charitable foundation?

If your business is like many businesses today, you see the need to give back to your community. Your employees also want to work for a company that allows them to give back. Your leadership team supports and encourages charitable investment, but you know you can be doing more.

If your organization supports charitable organizations in ad hoc ways and has not established a corporate charitable foundation, it might be time to consider one. Having a foundation enables businesses to think strategically about giving. Giving with goals and a purpose benefits your business as well as the nonprofit organizations you support.

What is a corporate charitable foundation?
It’s an entity that many businesses use to provide funding for non-profit organizations that have causes they wish to support.  Basically, your company makes a tax-deductible contribution to the foundation your company has set up, and that foundation makes grants to nonprofits.

A corporate donor-advised fund is an investment account for your company’s charitable dollars, and it can serve as your company’s corporate foundation, which simplifies the tax requirements and reporting paperwork. Greater Horizons can help you structure your charitable foundation in a way that is right for your business.

Benefits of a corporate charitable foundation
For your business, the benefits are twofold. Your organization can accomplish strategic corporate giving initiatives with a corporate charitable foundation. It can also help provide ways to engage employees. Highly-engaged employees are much more likely to have more job satisfaction and have higher tenure than those who aren’t engaged.

When charitable investment is part of your mission, it allows for a stronger relationship between your company and the community. There are many different avenues that you can choose to fulfill that mission, and Greater Horizons can help you consider all of the options.

Choosing the right investment vehicle for your foundation
Corporate charitable investment has a positive impact on the community and donors. Companies that have charitable foundations and other giving programs can set themselves apart from others.

But how should your company deliver on its charitable investment goals? Corporate foundations can be an important vehicle to achieve these goals. That said, the benefits may not outweigh the administrative burden if you don’t choose the right investment vehicle for your foundation.

With the corporate world becoming more philanthropic, understanding the different giving approaches available will help determine the best approach for your business. If you’re looking for simplicity of administration and investment management, consider a corporate donor-advised fund for charitable foundations. The ease of establishing and maintaining a corporate donor-advised fund can be an efficient vehicle and a long-term solution.

Choosing a corporate donor-advised fund from Greater Horizons also allows you to:

  • Organize corporate giving under one structure
  • Keep fees low, starting at $21 a month
  • Donate with no minimum contribution requirements
  • Spend minimal time and effort on administrative duties
  • Receive one year-end statement for accounting purposes
  • Eliminate the cost of corporate foundation registration renewals, filings and oversight

The tax benefits of a corporate donor-advised fund include:

  • Higher AGI tax deduction limitations
  • Fair market value deduction for gifts of real estate and closely held stock
  • Avoiding annual excise tax payments and avoiding excise taxes on the sale of highly appreciated gifts.

Let Greater Horizons help you establish your corporate charitable foundation. Whatever your reason for giving, Greater Horizons’ job is to help you fulfill your company’s philanthropic mission as easily and effectively as possible.

To learn more about corporate charitable foundations, contact us at corporategiving@greaterhorizons.org.


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