Frequently Asked Questions

Private Foundations

A private foundation is a type of non-profit organization that is typically established by an individual, family, or corporation, with the primary purpose of making grants to other charitable organizations.

Private foundations offer several benefits, including:
    • Control: Private foundations allow the donor or the donor’s family to have greater control over the distribution of their assets  and investments for charitable purposes.
    • Tax benefits: Donors to private foundations are eligible for tax deductions from their charitable contributions.
    • Build a Legacy: Private foundations can provide a way for the donor or the donor’s family to create a lasting legacy by supporting the causes they care about.
    • Involvement: Private foundations can provide an opportunity for the donor or the donor’s family to be actively involved in the grantmaking process and to have a direct impact on the causes they support.

When you are ready to fund your private foundation you can contribute a wide range of assets as charitable donations including: cash; securities like stocks, bonds, and mutual funds;  real estate; artwork and collectibles; intellectual property like patents, trademarks, and copyrights; and closely held business interests. 


It’s important to note that certain assets may have different tax implications and cost basis deductions, so it’s best to consult with a Crewe Foundation Services professional for specific advice on which assets you are considering donating to a private foundation.

Private foundation assets can be used for a variety of purposes, including: grantmaking;  charitable programs; administrative expenses; and investments.

Your private foundation can make grants to a variety of charitable organizations, including: public charities; other Private foundations, subject to certain restrictions; religious organizations like churches synagogues and mosques; educational institutions like colleges and universities; health organizations like hospitals and health clinics; Supporting Organizations and arts and culture organizations like museums, theaters and orchestras just to name a few.

Yes, private foundations can hire family members, but there are certain restrictions and requirements that must be followed. For example, compensated family members must receive reasonable compensation for the services they provide and it must not be excessive in relation to the services they perform. The compensation must be approved in advance by an independent body, such as a board of directors or a compensation committee.

It’s important to note that hiring family members can increase the risk of self-dealing and potential penalties, so it’s important to be cautious.

Private foundations are required to distribute a minimum of 5% of their assets each year for charitable purposes, known as the “distribution requirement.” The minimum distribution requirement is calculated based on the foundation’s assets.

Yes, if a private foundation does not distribute the minimum required amount each year, it may be subject to an excise tax on the shortfall, known as the “excess business holdings tax.” The excess business holdings tax encourages private foundations to meet the minimum distribution requirement.

Also failure to meet the minimum distribution requirement can result in other penalties, including loss of tax-exempt status and potential excise taxes on self-dealing transactions.

It’s important to note that private foundations should carefully monitor their distribution requirements and ensure compliance with tax laws.

Yes, private foundation board members can be compensated, but like with family members being compensated, there are certain restrictions and requirements that must be followed. Board members of private foundations are considered “disqualified persons” and are subject to strict regulations to avoid the appearance of self-dealing.

Board member compensation must be reasonable in light of the services performed and not be excessive in relation to the compensation of comparable positions. The compensation must be approved in advance by an independent body, such as a compensation committee or the full board of directors.

Charitable Remainder Trusts

A charitable remainder trust commonly referred to as a CRT is an irrevocable trust that distributes an income stream to you, as the donor to the CRT, or others, referred to as income beneficiaries, with the remainder of the trust assets going to your Crewe Foundation DAF or another favorite charity or charities upon the termination of the trust.

CRTs retain the value of highly appreciated assets that you contribute. If you sold the assets and donated cash you’d have to pay capital gains tax. A CRT can bypass this tax leaving more money to work for you and eventually for your DAF
CRTs are tax exempt. Although a CRTis required to file a return with the IRS each year it is not taxable. This leaves more assets in the trust working for you and your charitable organization.

Yes, there are several variations of charitable remainder trusts often referred to as a CRT or CRUT, as well as charitable lead trusts and charitable annuity trusts often referred to as a CRAT. Contact Crewe Foundation for which one might best fit your situation. CRTs are tax exempt. Although a CRT is required to file a return with the IRS each year it is not taxable. This leaves more assets in the trust working for you and your charitable organization.

A charitable remainder trust, or CRT is a “split interest” trust, meaning there is more than one beneficiary. A CRT distributes to an income beneficiary, usually a donor, or donor and their spouse, for their lifetime and then distributes the remaining assets to charity, like your Crewe Foundation donor-advised fund afterwards.

A CRUT (charitable remainder unitrust) and a CRAT (charitable remainder annuity trust) are very similar but have one main difference. CRUT distributes a percentage of the trust assets based on the trust’s value each year, while the CRAT distributes a percentage of trust assets based on the initial value. In other words, the CRUT distribution changes with the value of the trust each year while the CRAT always pays the same regardless of the trust value. Another difference is that with a CRUT, you can make additional contributions, while with a CRAT you can’t.

Yes. When you make contributions to your CRT you are eligible for a partial tax deduction based on a calculated value of the CRT’s assets that will pass to your donor advised fund.

When you are ready to fund your CRT, you can use the following types of assets:

  • Publicly traded securities
  • Real Estate
  • Cash
  • Some types of private stock (CRTs can’t hold S-Corp stock)
  • Cryptocurrencies
  • Other complex assets

When you donate an appreciated asset like stock or real estate that you’ve held for more than a year you avoid the capital gains tax that you would have had to pay if you sold the asset first and then donated the cash.

Yes, you can name yourself and spouse as income beneficiaries and receive an income for your lifetimes or for a term of years up to 20.

After the death of the last income beneficiary or the term of years is up the remaining assets are transferred to charity, like your DAF with Crewe Foundation.

No. When you contribute to a CRT, whether a CRUT or CRAT it is considered an irrevocable transfer of assets. Both of these trusts are required to distribute assets, usually in cash, whether it be from trust income or the principal, to the income beneficiary and your upfront deduction is based on your future gift to charity when the remaining assets are then distributed to your donor advised fund at Crewe Foundation.

Yes. In fact, you achieve greater flexibility when you combine the strategy of a charitable remainder trust along with your donor-advised fund. When you list Crewe Foundation and your DAF as the public charity you simplify the process of adjusting and recommending the ultimate recipients of grants. This more flexible strategy can eliminate the costly legal work to amend a trust and change the charitable remainder beneficiary which in some cases isn’t even allowed.

Donor Advised Funds

A donor advised fund often referred to as a DAF is a charitable giving account established with a qualified sponsoring charitable organization like Crewe Foundation. The purpose of a DAF is to financially support charitable organizations of your choice over time.

There is no limit to the amount you can contribute to a DAF.

Donations to your DAF with Crewe Foundation are tax deductible. The amount you can take as a deduction depends on your personal tax situation.

The IRS currently allows you to deduct up to 60% of your AGI when you donate cash to your DAF, or up to 30% if you donate long term appreciated assets.

No, when you donate appreciated assets to your DAF you and the charitable organization get to bypass the capital gains tax, leaving more funds to benefit your favorite charities.

With Crewe Foundation, you can donate a variety of asset types such as:

  • Publicly traded securities
  • Real Estate
  • Cash
  • Private stock
  • Cryptocurrencies
  • Other complex assets

You can recommend grants to any IRS recognized public charity. They are generally classified as 501(c)3 organizations. You can even give to foreign charitable organization when the IRS guidelines are followed.

Yes, there are some things your DAF can’t donate to. It can’t make any grants where you or your family members receive any kind of benefit such as tickets to an event, or a scholarship for your child. Generally you can’t make grants to private non operating foundations either.

No, when you make a contribution to your Crewe Foundation DAF it is considered a completed gift to charity. It is no longer part of your estate. Some consider donating to a DAF equivalent to creating an estate tax deduction because you reduce the taxable amount of your estate by the amount contributed.

At Crewe Foundation your DAF is designed to last as long as you like. You can name successor advisors to continue making grant recommendations who will also be able to name their successors or set up a list of charities to receive grants on an annual basis in perpetuity.

  • When you create a DAF and contribute to it, you are making a gift to the sponsoring charity, Crewe Foundation. When this happens, you technically transfer your ownership of the cash or asset and it is owned by Crewe Foundation. This is considered a completed gift by the IRS and is what allows you to claim a tax deduction, bypass any capital gains tax on appreciated assets, and potentially reduce your future estate taxes.
  • You also have the ability to make grants from your new Crewe Foundation DAF as well as coordinate the investments of the fund.

Open a New DAF Account

Tell us a bit about yourself.

"*" indicates required fields

Name*

Thank you!

Please download, complete, and return the following forms:


The above documents will also be forwarded to you by email.  Please return signed forms via email to info@cfs.octiv.site or by fax to (801) 563-1971.

You will be contacted by a Crewe Foundation Specialist when your new account has been created and is ready for funding.