Giving Compass' Take:

· Writing for Forbes, Page Snow, Chief Philanthropic Officer at Foundation Source, explains the benefits of establishing a private foundation as a smarter way to do your charitable giving. 

· What are some of the benefits of private foundations? How does this help with your giving? 

· Check out this article explaining how they way you give matters. 

Many of us give generously to charity—especially during the holiday season. But if you’ve been giving by writing checks or clicking “donate” online, you should know that giving through a private foundation offers tremendous advantages not only for the causes you support but also for you as an individual donor.

As the end of the year approaches, you might be thinking about establishing a charitable vehicle to give back to your community, engage your family in your philanthropy, and maximize your tax savings. Setting up a foundation entitles you to claim a same-year tax deduction—even if you establish your foundation in late December and don’t make a single grant this calendar year. That’s because, with a private foundation, you get the tax deduction up front when the foundation is funded, and then have time to make your charitable gifts, preserving flexibility and enabling you to give strategically.

Private foundations offer other important tax savings, helping you avoid capital gains tax liability as well as estate and gift taxes. You can donate appreciated assets to your foundation, such as low-basis stock that you’ve held for years, and realize a tax deduction for their full fair market value of (up to 20% of adjusted gross income with a five-year carry forward). Foundation assets are exempt from estate and gift taxes, yet remain under your control. Contributions to your foundation are irrevocable and must be dedicated to charity. In practice, this means that when you donate assets to a foundation, they’re removed from your estate for tax purposes, but you and your family can continue to decide how those assets will be invested, and enjoy full discretion over where and how they will be distributed for years to come.

Read the full article about giving smarter by Page Snow at Forbes.