One of the greatest benefits in donating to an endowment foundation you own is that it can allow you to reduce your taxes by up to 30%. By owning a Bridgeway International Endowment Foundation™ you can effectively donate assets you all ready own such as real estate, savings, cash, investments, etc. While effectively lowering taxes and effectively creating asset protection.
INCORPORATE EVEN IF YOU DON'T HAVE
Unless you are planning to donate all the funds your project needs, you may want to raise funds from others. We encourage all our foundations to raise funds from others.
Earn High Yielding investments offshore
Foundation is your work engine for investments, you must protect it. All investments are tax free. By using a international business company (IBC) you can access higher yielding investment returns.
YOUR CHARITABLE CAUSES
Gifts and payments from your foundation may be of two different types:
You may make gifts to national or community charities, schools, churches and any other charities qualified by the IRS under section 501(c)(3).
Who would you like to help? Do you want to help people with heart disease or cancer? Would you like to improve the facilities at your local hospital? Would you like to provide shelter for the homeless? All of these causes can be benefited by your foundation. You're probably already making contributions to charities that you feel strongly about. Yet, if you decide to make donations to your foundation, you may also request distributions from your foundation to those charities.
Under supervision, you may actually begin a charitable program of your own design. Foundations are able to take care of elderly people; support missionaries worldwide; provide shelters for the homeless; maintain parks, etc. The opportunities are endless!
Simply design the program, have it approved and begin your work. Once your foundation or non-profit 501(c)(3) becomes active, you can request the following services to help organize and maintain your foundation.
GIFTS TO OTHER COUNTRIES
You may make gifts to charities, churches and projects in other countries. Direct contributions to charitable activities in other countries are generally not deductible. If you arrange to make these donations through your foundation however, they are deductible!
Under the law, a Nevada company is an "artificial person," completely separate from the people who own and operate it. This is different from an individual or sole proprietorship where the owner bears the full and complete financial responsibility for his or her actions.
Because it is an independent entity, a Nevada company's debts and taxes are separate from those of its owners. Therefore, Nevada provides an individual in business, whether salaried or on commission, with the greatest personal liability protection.
Nevada doesn't share confidential information about its corporations and limited partnerships with the IRS. In 1992 and again in 2001, the IRS formally requested such an exchange program and the Nevada Governor turned the IRS down flat!
YOUR OWN FOUNDATION
The family that establishes an endowment foundation as the centerpiece for their collective giving will derive the greatest amount of satisfaction from their program of philanthropy.
A foundation helps the family or business organize their giving program in a purposeful manner to achieve their charitable goals. For the same reason that a business entity is created, which is to achieve a business purpose in an organized fashion, so should you create a foundation, to achieve your philanthropic purpose. It all starts with a business plan, just the same as if it were a "for-profit" business, except that the foundation is to be a "not-for-profit."
The reason is simple: if your purpose is to help the community, the government says that you don’t have to pay taxes, and even the money you give for the purpose of the foundation is tax-deductible. Even better, others can join you in your purpose and contribute funds that are tax-deductible.
Those who have established foundations can tell you the real benefits they have derived from having their foundations. There are many, and most will tell you that one of the biggest advantages is that they have "bonded" more with their family members or fellow employees. Perhaps of greatest significance is the opportunity to make a difference in your community.
The founders of the foundation also have an opportunity to convey their own personal values to the rest of the group. They can also assist them in learning and applying "sound business" practices, such as accounting, leadership, teamwork and every other aspect of running a business, even though it is "not-for-profit."
Another significant advantage is that having your own foundation prepares the participants for service on other boards and committees of charitable organizations in the community. This always leads to opening many doors for business opportunities, and making connections with people they would not have otherwise met.
These are the social and business aspects of your foundation. However, there are many tax advantages as well. We discuss here the many ways you and others can give to your foundation, and how you and they can benefit from these gifts.
THE EXCITEMENT OF FOUNDATIONS
When a person establishes a foundation or donates to a particular foundation that person severs the link between themselves and the use of that money. You as the founder may:
- Contribute to other 501(c)(3) charitable organizations.
- Nominate employees to conduct genuine charitable activities for their foundation.
- Provide for perpetual advisory leadership for their foundation activities.
- Conduct other activities within the parameters of regulations and IRS Code Section 501(c)(3).
- Serve at local nonprofit organizations and distribute grants to them to supplement any salary they may pay to you.
- Create a scholarship or grant-making program to help those not related to you who are in need.
What unsuspecting clients often do not realize is that when you establish a non-profit entity you may be merely acting as a temporary trustee for the Internal Revenue Service. Any mis-management of the funds or improper "self-dealing" can cause an immediate I.R.S. penalty of 100% of your funds. This is also true of self-directed IRA accounts.
Therefore, for Asset Protection the client must set up two entities. The first one is an Endowment Foundation whose sole purpose is to make investments; it must give away a minimum of 5% per year - a simple task. The Operating Foundation protects the Endowment Funds in the event of a lawsuit or mis-management by the actions of the founder; it retains only enough funds to pay expenses.