WHAT IS A
SUPPORTING ORGANIZATION?
Supporting organizations are operated exclusively
for the benefit of, to perform the functions of, or to carry out the purposes of
one or more specified public charities. Community foundations are often —
though not always — the public charities supported by these types of
organizations.
Supporting organizations are complex legal entities, and in simplest terms
can be described as a "hybrid" of a donor-advised fund (see Give
to or through a Community Foundation) and a private foundation (see Create
a Private Foundation). There are three basic types of supporting
organizations, and each option reserves a varying degree of the supporting
organization’s governance for the trustees of the beneficiary charity.
Because of the complex nature of supporting organizations, it is important
that you consult a professional advisor for further information and guidance.
NEXT STEPS
PUBLICATIONS
The book "Legal Compendium for Community Foundations," published by
the national Council on Foundations, contains an excellent chapter on supporting
organizations. It is available for $55. For details, see Giving
Resources.
HELP
The Minnesota Council on Foundations is available for one-on-one
consultations. Contact the Council at 612.338.1989 or info@mcf.org.
|