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CHARITABLE PLANNING

Let NPT guide you in all areas of your charitable giving. 

  • Plan your giving
  • Follow your passion
  • Put it into practice

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Wealthy individuals who wish to make a commitment to philanthropy often consider establishing a private foundation.  As the following table shows, a Supporting Organization with NPT offers numerous benefits over a private foundation.

  Supporting Organizations Private Foundations
Start-Up Costs: Costs to establish a supporting organization are substantially lower than the legal and accounting costs associated with a private foundation. Legal fees and other start-up costs can be substantial; typically takes several weeks and often a few months to create.
Ongoing Administrative and Management Fees: Varies with choice of SO board, and level of services required(typically less than a private foundation). Varies with choice of board and level of services required (typically 2.5% to 6% per year).
Control of grants and investments: Donor may recommend grants and investments, but the parent organization has significant input in all final decisions. Donor family has complete control of all grantmaking and investments decisions, subject to self-dealing rules.
Required Payout: None, but must demonstrate ongoing support for named public charities or causes. Must expend 5% of net assets value annually, regardless of how much the assets earn.
Tax deduction limits for gifts of cash*: 50% of adjusted gross income. 30% of adjusted gross income.
Tax deduction limits for gifts of stock or real property*: 30% of adjusted gross income. 20% of adjusted gross income.
Excise Taxes: None. Excise tax of 1% to 2% of net investment income annually.
Valuation of gifts: Fair market value. Fair market value for publicly traded stock, cost basis for all other gifts, including gifts of closely held stock or real property.
Board of directors - founder, their family, and heirs may serve on the board: Yes. Yes.
Board of directors - founder, their family, and heirs may have a controlling voting interest on the board: No. Yes.
Perpetuity: Can exist in perpetuity. Can exist in perpetuity.


* Excess in any year's donations can be carried forward up to five years.