News for Professional Advisors

If you have clients who want the identity, control and freedom of their own charitable foundation, but without the administrative burdens, a Supporting Organization could be the perfect solution.

Supporting Organizations are individual 501(c)(3) public charities under Section 509(a)(3) of the tax code, however, they are not subject to many IRS restrictions that limit private foundations, including excise taxes on earnings, minimum distribution requirements, and limited deductability of charitable gifts.

Once a Supporting Organization is established, the donor and representatives from the Sioux Falls Area Community Foundation work together to appoint members to its board, which will control the investment strategy and may also select managers.

From there, our staff is here to ensure the Supporting Organization meets its grantmaking and philanthropic goals by helping to define strategy, developing grant guidelines and managing the proposal process, assessing the effectiveness and impact of grants, and more.

On the administrative side, we provide investment management services, record keeping, tax filing, grants processing, and meeting coordination. And your client can choose one of our investment pools or retain their own investment manager.

A small board of directors, which may include the donor, oversees all aspects and decisions of the Supporting Organization. As part of the partnership, the majority of board members must be appointed by the Community Foundation.

Want to learn more about how a Supporting Organization could help your clients? Contact me today.