Setting up a foundation is a goal may individuals have in common. Young, school-aged people are often exposed to getting involved with various foundations to do volunteer work. At times, this can inspire children to think of one day setting up their own foundation to raise awareness in various causes. By setting up a foundation, one will have the ability to help the needy and underprivileged in society. Truly, it can bring about many benefits to not only to the underprivileged, but it also has the capability to give people fulfillment. Members alongside volunteers of the foundation will experience self-fulfillment knowing that they are able to help and serve various parts of different communities. Hence, in this article we have come up with a list of both the technical advantages and disadvantages of putting up a foundation.
1. Tax deductions/exemptions
Given that your foundation will receive nonprofit status, corporations have the tendency to have the desire to donate given that their taxes as a corporation will be deducted. This policy by the respective governments of makes it feasible for foundations like NGOs and NPOs to acquire funds from various corporations. For corporations, many of them choose to do this and help the less fortunate over losing their funds likewise anyway.
Likewise, the foundation is also exempted from paying taxes given that they do not work for profit and in fact even help society.
To some people, recognition gives them great pride and prestige, and is something a foundation can bring them. Recognition can be provided to both the founders and their families, which can also improve personal relations within the community.
3. Increased Privacy
Many individuals have many concerns regarding the privacy of their documents from various government agencies. As a family foundation, the organization has the right to keep their files undisclosed as it provides funds for themselves unlike public charities. 4. Reimbursed travel expenses
Although this is also a benefit many employees from different corporations enjoy, most nonprofits like to reward their employees by reimbursing their travel expenses especially when visiting the field where communities are being built or aided, and back to their office sites. These are one of the rewards employees receive from their work which is similar to volunteering.
1. Capital/initial costs
To be recognized as a philanthropic foundation or charity, various costs need to be shouldered by the founding organizers. Although this may seem as a one-time-effort type of thing, documentations need to be filled and handles which not everyone is willing to do.
2. Recordkeeping requirements
Philanthropic organizations like family foundations have strict policies to continually operate. Such things include the documentation of meetings including the time spent in each of those meetings.
3. Reliance on donations
Corporations are sustained through by means of profit. This means that a simple sale in their products or promotions can be done whereas the control for foundations are a lot less. People may not always be interested in giving donations and partner corporations could be going through a crises on their own, making them unable to provide the usual aid they offer. Setting up a foundation is clearly no easy feat. Many obstacles will come your way in both the building and maintaining process. By putting up your own foundation, you will experience varied cases of both pros and cons but in the end, the biggest benefits in setting up a foundation are the various initiatives you will be able to achieve and in return help communities. Philanthropists who give to individuals have been receiving fulfillment from the giving that they do alongside the people whose lives have changed thanks to their service.