Starting a memorial charity is a great opportunity and noble way to honor a loved one. With a memorial charity or memorial fund you can celebrate your loved one by supporting causes that positively impact people and communities. This guide not only walks you through this process but also highlights the tax benefits associated with such an endeavor, particularly when involving public charities like CharitySmith.
About CharitySmith
The CharitySmith community is brimming with stories that inspire, empower, and remind us of the incredible capacity of the human spirit to turn tragedy into a force for good.
When consumed by grief, our memorial charity founders have been able to find a way to support programs that share the joy that their loved ones experienced, whether it be through sports, dance, pets or other endeavors. Others dedicate their funds to avoiding the tragedy they experienced, whether it be by funding substance abuse prevention and treatment, supporting accident prevention programs or by providing safety equipment.
When tragedy occurs, family and friends are anxious to provide support and often want to contribute in a meaningful way. At CharitySmith can set up a memorial charity and related website in a matter of days so that initial fund contribution information can be integrated into funeral arrangement information.
Creating a fund with CharitySmith Vs. Establishing a Private Foundation
Setting up a public charity also has significant tax advantages versus establishing a private foundation, most significantly, public charities generally receive a wider array of tax-deductible contributions compared to private foundations. When creating a fund through CharitySmith, your memorial charity or memorial fund becomes a division of CharitySmith, a 501(c)3 public charity. By doing so this usually makes most contributions eligible for corporate matching gift programs.
Corporate Matching Gifts and Their Impact
Corporate matching gifts can dramatically increase the impact of individual donations. This segment discusses how engaging with corporations for matching programs can boost your charity’s resources. A fund created through CharitySmith is usually eligible for corporate matching gifts and is already registered in many of the systems commonly used by corporations for gift matching.
FAQs on Tax Deductible Memorial Charity Giving
- What differentiates a public charity’s tax status from a private foundation?
Public charities generally receive a wider array of tax-deductible contributions compared to private foundations. - How does CharitySmith qualify for corporate matching gifts?
As a public charity, CharitySmith is eligible for matching gift programs offered by many corporations, enhancing the value of individual donations. - What should I consider when setting up a tax-efficient memorial charity?
Focus on structuring your charity to take full advantage of tax deductions and consider potential corporate partnerships. - How do corporate matching gifts work?
Corporations match donations made by their employees to eligible charities, effectively doubling the donation. - Are all donations to a memorial charity tax-deductible?
Most donations to public charities like CharitySmith are tax-deductible, but it’s always best to consult with a tax professional. - What documentation is needed for tax-deductible donations?
Donors need a receipt or acknowledgment from the charity for their donation to be tax-deductible.
In conclusion, CharitySmith can quickly set up a tax advantaged memorial fund or memorial charity tailored to the goals that best memorializes their family’s loved one. Our organization develops and maintains a dedicated website, as well as handling all deposits, grant disbursements and tax deductible gift acknowledgements. Contact CharitySmith for more information.