Supporting Organization

Creating a Supporting Organization: High Impact, High Involvement, Low Hassle

A Supporting Organization is an excellent alternative to a private foundation. You select some of the board members and support the causes you care about most, while enjoying
the favorable tax treatment, immediate startup, and ease of administration associated with working through your community foundation.

How it works

• You make a gift to the community foundation — you can give cash, appreciated stocks, real estate, or other assets. We establish a Supporting Organization — a separate
charitable entity — in your name, in the name of your family or business, or in honor of any person or organization you choose.

• You select up to 49 percent of your board of directors; the community foundation assigns the rest (so that you beneﬁt from afﬁliation with a public charity).

• You receive tax beneﬁts in the year your gift is made.

• Your board of directors recommends grants — working with our professional program staff — to support the causes and agencies you care about most. We issue grants to
charities in the name of the Supporting Organization you establish (if you prefer, grants can be made anonymously).

• We handle all the administrative details.

• Your gift can be placed into an endowment that is invested and will grow over time. Grants addressing community needs are made forever. You can help determine investment
strategy for the organization, get advice from the community foundation, or leave the details to our professional investment managers.


	High Involvement, Reduced Work: Supporting Organization Example Ethel and Dave Steen were about to sell their decades-old family business. Over the last couple of years, they had discussed using a portion of the proceeds to establish a charitable foundation. “Our community has given us our livelihood, and we want to say ‘thank you,’” says Ethel. “But we also want to enjoy our retirement. I was surprised at the time, energy, and money it takes to start and manage a private foundation.” The Steens wanted to make a big and positive impact but were not sure that they could consistently identify their community’s most pressing needs. After talking to their professional advisor, the Steens decided to establish The Steen Foundation for Giving, a Supporting Organization afﬁliated with their community foundation. “Our son and granddaughter sit on the board with us, so we get the involvement and togetherness we were looking for,” says Dave.