Special Situations

The following are charitable giving options your client may want to consider including transfer of a private foundation, ownership of a closely held business, and corporate giving information.

Transferring a Private Foundation

You may have clients who wish to maintain long-term involvement with charitable assets and a private foundation offers a viable option, however, the disadvantages such as costs, administration, and lesser tax benefits can cause many people to seek an alternative. For some donors a private foundation is ideally suited to their needs. For others, establishing a fund at the Community Foundation of Greater Rochester often proves more attractive.

Private foundations can transfer assets to establish a permanent named fund or supporting organization of the Community Foundation of Greater Rochester. In either case, the private foundation's name and philanthropic goals can be retained. No tax or penalty is assessed on such transfers. We would be happy to discuss ways in which we can help your private foundation clients achieve their charitable purposes and be relieved of the burdens and limitations imposed on private foundations.

For a comparison of a Community Foundation and a private foundation, see download below.

Foundation Fund or Private Foundation

Closely Held Business

Owners of a closely held or family business are often very involved in the community and in charitable giving. A partnership with the Community Foundation of Greater Rochester is a cost-effective method to maximize and target charitable involvement while minimizing tax liability. The Community Foundation can be of particular assistance under the following circumstances:

  • Passing ownership of the company to children or others
  • Selling the company and minimizing taxes
  • Getting equity out of the company to provide income for the donor and others
  • Facing taxation on excess retained earnings

When Your Client is a Corporation

Corporations often receive many requests for charitable support that results in unfocused corporate giving. Donations a corporation makes may also depend on the executive contacted by a particular charity, varying from one year to the next. Some corporations may be unsure of the charitable dollars they will have available. Corporations may be interested in a particular community problem but not want the cost of the necessary administrative time and effort. The Community Foundation can help simplify the charitable giving process.

To learn how the Community Foundation of Greater Rochester can help your corporate client refine their charitable giving, please call 248-608-2804.

© 2017 Community Foundation of Greater Rochester, a 501(c)3 nonprofit organization.
303 East Street | P.O. Box 80431 | Rochester, MI 48308-0431

Site Credits