Through out my entire life, my family has been involved in volunteering and nonprofit work. It was the way of life and just something that my family did. We were (and still are) heavily involved with our church and regularly get involved with our community. It taught me to be grateful for the things that I had and that a little bit of effort for me, had a huge impact on the life of another. That in itself is what most seems to be lost on many today. I wanted to do more but was not sure how, until I did some research.
I first looked at starting my own 501(c)(3) and quickly found out the following:
It was going to be expensive
Keeping it compliant would be a lot of work and more burdensome than I wanted
I would not be able to give anonymously
I would be required to give a minimum of 5% annually
While I would have absolute control and be able to take a salary from it one day, I was not ready just yet to be able to maintain of this on my own and I would not be sure of what I was doing. So I found another option to the 501(c)(3) called a Donor-Advised Fund.
A donor-advised fund or DAF for short, is a lot like opening up a bank account at your local bank. You open a DAF with a current 501(c)(3) who will maintain everything for you. Some nonprofits organizations have a minimum requirement within the account to open one and may charge a fee to set up. These are usually the big NGO’s. So I found a local nonprofit that sets it up for free and only takes a 1% annual fee of what I have within the account! This was the cheapest option I could find out there but still get all the benefits of having a family foundation.
The Glover Foundation is a donor-advised fund with Legacy Global Foundation. I can still donate money to it and receive a full tax deduction up to 60% of my adjusted gross income (AGI). I can then advised Legacy to distribute funds to local causes and other nonprofit organizations and can choose whether or not to remain anonymous or to give as The Glover Foundation. This helps me avoid having to vet every single organization I want to give to since Legacy Global does that for me. If they see something that does not look right, they let me know and can help me find a qualified nonprofit to give to that supports the same cause.
I now work with Legacy Global as their Director of Estate and Gift planning to help others with their charitable planning along side estate and tax professionals. I love what I do there as I get to meet with some of the most giving and creative professionals in the world. People are able to give non-cash assets such as real estate, business interest, stock and even animals to receive a tax-deduction in return. It really can be a win-win for all the parties involved.
DAF’s are not the only thing Legacy Global does. They also help other 501(c)(3) ‘s maintain their compliance and tax status by doing their taxes and even becoming volunteers on the board of other nonprofits. They train organization how to take meeting minutes and their required board meetings. Something I have been grateful to have been a part of as we get to see them change the lives of so many around the world.
If you would like to know more about the Glover Foundation or how to get started with your own foundation, please feel free to contact my offices at (480) 378-3000 or call Legacy Global at (480) 505-6248 or go to www.StartMyLegacy.org