What is a private foundation
A private foundation is a type of foundation that is established by an individual, group of individuals or family members for private use or a focus on philanthropy. A foundation can be described in principle as a trust in a corporate shell – it is a legal entity with a legal personality in its own right. If you wish to establish a private foundation it is highly advised that you seek the advice of a professional consultancy to ensure you set up your foundation in the most favorable location, and mange your foundation in accordance with the relevant foundation law.
For more information on private foundations or to find out how DeltaQuest can assist you with your foundation needs, please Contact Us.
Private foundation explained
A private foundation is typically set up by an individual or family in a bid to secure and hold assets in a legal protective shell. Generally private foundation will not be built from funds given from the public but it will contain assets, funds and other properties of value from the owners of the foundation.
Depending on the jurisdiction in which you establish a foundation, your assets held in the foundation could be tax exempt. It is important to consider the country in which you intend to set up a private foundation in very carefully and assess the foundation law imposed in that country.
Private foundations are popular in certain countries, particularly the USA.
For a foundation to be considered a private foundation it must be assessed on the legal requirements of the foundation, its purpose and economic activity, the persons monitoring and supervising the foundation, accounts and auditing provisions, the foundation structure and its tax status.
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