What are Supporting Organizations?
Supporting Organizations provide maximum flexibility without the administrative complexities of a private foundation. Although they have their own tax ID number and your donations receive the maximum level of tax deductions, they are covered under the umbrella of the Santa Barbara Foundation and their grants and activities must fulfill and support the charitable purposes of the foundation. You will work closely with us to appoint a board and we handle all of the administrative oversight, including the IRS 990 filings. You should consider starting a Supporting Organization only as a more simplified and efficient alternative to a private family foundation.
What are the benefits of a Supporting Organization?
- We provide full administrative and management support; maintenance costs are generally lower than a private foundation.
- You receive a higher tax deduction than you would by starting a private foundation.
- You will not have the mandated distribution requirements that private foundations do.
- You have the opportunity to give anonymously.
- You have the option to pool your organization’s assets with the foundation’s assets or may have have a separately managed investment account.
- You can involve your family in your giving over generations.
How does a Supporting Organization work?
- You express interest in starting a Supporting Organization with us by contacting our staff.
- We handle all of the legal work to set up your Supporting Organization, including filing for public charity status, establishing bylaws and working with you to establish your mission.
- We help you select a board of directors and create a grant program.
- Your board of directors reviews grant applications and recommends recipients.
- We distribute the grants to eligible nonprofits.