The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Non-Profit Organizations Of The Rich.||Date: 7/26/2000 11:02 PM|
|Author: TMFExRO||Number: 38077 of 122579|
Do they do it for the "giving" , or is there something (which I suspect is so) that actually causes them to preserve their wealth by paying less in taxes than if they didn't have the non-profit organization to begin with?
And they call me cynical.
A charitable foundation is an entity in itself, and the rich person who funded it no longer owns the assets. Of course they pay less in taxes than people who keep every penny they can; they get a charitable contribution deduction (within limits). The same is true for anyone who itemizes and makes charitable contributions.
As I see it, the personal benefit that the funder gets is the ability to see that the charitable funds are directed to projects that (s)he feels are worth the time and money. God knows there's enough need, and I for one don't quibble with people who do good works, even if they insist on putting their names on buildings.
I'd be the last person to say that there has never been a scam involving a foundation. For a laugh-out-loud fictional narrative about one, I highly recommend the out-of-print "How Firm a Foundation" by Patrick Dennis.
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