In addition to the many philanthropic and charitable reasons a donor might have for establishing and funding a private foundation, there are also short-term and long-term tax benefits to consider. A donor may be able to take advantage of three main tax benefits when he or she gives to a private foundation:
1. Reducing the donor’s income tax for each year in which a contribution is made;
2. Avoiding capital gains taxes depending on the characteristics of property contributed; and
3. Reducing or eliminating potential estate taxes.
Learn more in this informative article, which includes sample donor scenarios.