Charitable Planning and Non-Profit Formations

Charitable Planning

Charitable planning is a broad designation that refers to an entity’s strategic approach to charitable giving. Charitable planning is typically designed to accomplish two things: the efficacy of the donor’s charitable values and the financial benefits that the donor experiences upon practicing those values. From extended trusts to large, one time donations, charitable planning constitutes a variety of gift-giving vehicles.

To arrive at the charitable plan that meets your charitable and financial goals, you should consult with an attorney who has experience in charitable planning. After considering your charitable goal in relation to your current and foreseeable finances, your attorney will help you decide on the charitable plan that best meets your charitable and financial goals.

Non-Profit Formations

In the U.S., nonprofit organizations form by incorporating within the state where they plan to do business. Upon incorporating, a non-profit organization can legally enter into business dealings and property ownership just as for-profit corporations can. The basic difference between a nonprofit and a for-profit corporation is that the former does not issue stock, pay dividends or enrich its board of directors.

There are two basic types of nonprofit organization structure: membership and board-only. Under membership organization, the organization’s members elect a board of directors and retain the power to amend bylaws, while a board-only organization consists of a self-selected board of directors that delegate power to the organization’s members. As with charitable planning, choosing the right organization structure for your non-profit should involve the opinion of an experienced attorney.