${site.data.firmName}${SEMFirmNameAlt}
Call for a Consultation
(914) 290-4550 (888) 892-9072
Menu Contact

Understanding the types of charitable organizations

Starting a charitable organization can be a great way to give back and to make a positive impact in your local community or society as a whole.

It can also have significant benefits from a tax perspective, allowing your money to go further toward reaching your charitable goals.

However, starting a charity requires that you understand the difference between the different types of charitable organizations.

Doing so will help you to select the best option for your needs. 

If you are considering creating a charitable organization - for tax planning or any other purpose - Bashian P.C. can help. 

Private Independent Foundations

Private foundations can be formed as a corporation or trust by a business, an individual, or a family. These foundations tend to be financially supported by the party that incorporated it, and they usually redirect the funds held within the foundation to other charitable organizations.

Publicly Supported Charities

The most common types of charity are ones that are supported by funds from the public. Schools, churches, and organizations within the community can fit into this category. In order to qualify, the organization must generate at least one-third of support from public donations.

Charities supported by gifts, dues, and fees

These charities often provide services for a fee that helps to fund their activities. Business income investments should not exceed one-third of their total support, and at least one-third of support should come from gifts, dues, and fees to qualify.

Creating a charitable organization could help you to do good in the world and similarly help you to be more efficient with your taxable income. You should take the time to understand charities and non-profits in more detail before taking action to incorporate one.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Office Location

Bashian P.C.
235 Main Street
White Plains, NY 10601

Toll Free: 888-892-9072
Phone: 914-290-4550
Fax: (914) 946-5111
White Plains Law Office Map

Satellite Office:
552 Lake Avenue
Greenwich, CT 06830

Toll Free: 888-892-9072
Map & Directions

Contact The Firm For An Initial Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy