Special Situations   Sometimes making a charitable gift is not only the right thing to do personally, but it is also the right thing to do financially. Here are some “special situations” to consider: Transferring a Private Foundation Forming a Supporting Organization Closely Held Business Corporations Transferring a Private Foundation  A private foundation can be the right solution when donors wish to create a vehicle that allows them to maintain long-term involvement with charitable assets. However, the disadvantages of private foundations – including costs, administration, and reduced tax benefits – cause some donors to seek another alternative.   The Community Foundation of Greater Rochester enables donors to secure maximum tax deductions, involve family members and advise the grant distributions. While some donors may find a private foundation perfect for their charitable goals, the option of establishing a fund within the Community Foundation offers an attractive alternative.   Forming a Supporting Organization Gifts to a supporting organization of the Community Foundation are fully deductible at the current fair market value, including publicly traded or closely held stock. A supporting organization (as described in Internal Revenue Code Section 509(c)(3)) gives an organization many of the advantages of private foundations (its own board of trustee and separate decision-making) but enjoys the favorable tax status granted to Community Foundations resulting from the relationship between the supporting organization and the Community Foundation, a public charity.   Closely Held Business Owners of a closely held or family business are often very involved in and charitable toward the local community. Working with the Community Foundation of Greater Rochester can help maximize and target charitable giving while minimizing tax liability in the following circumstances: Passing ownership of the company to children or others Selling the company and minimizing the taxes Providing income by getting equity out of company  Creating supporting organization with closely held stock Facing taxation on excess retained earnings  Corporations Local corporations routinely receive requests for contributions. Those requests may or may not reflect the charitable goals of the corporation. Donations can vary depending upon the person contacted, the economic conditions, or changes in charitable focus. Some corporations may even be unsure of the charitable dollars they have available. The Community Foundation of Greater Rochester can help with a Corporate Donor Advised Fund that brings focus to the giving process.   The corporate donor advised fund provides a dependable stream of income to meet the company’s charitable obligations, during years when cash flow is tight or in good times when the company decides to add to the fund. A corporate donor advised fund evens out the peaks and valleys inherent in most business cycles.  The Foundation can also advise on the community’s charitable needs.   The corporation may create specific guidelines in grantmaking and advise the Foundation on grant distributions or give the Foundation discretion over disbursements.