Supporting Organizations
Supporting Organizations (SOs) offer a unique solution for donors that would like more flexibility in grantmaking and more control over investments than a Donor Advised Fund (DAF), without the increased regulations and administrative burden of a private foundation. SO’s also carry public charity status and the same tax benefits as a DAF. They can be funded with privately held stock, real estate, and other privately held assets and provide fair market value income tax deductions, unlike a private foundation.
SOs are ideal for philanthropists looking to support charitable organizations with greater involvement and flexibility. This hybrid-type foundation is outlined under Section 509(a)(3) of the IRC and carries with it specific requirements in setup, operation, and management. Crewe Foundation Services offers this foundation option in Type I format and can handle everything from setup and funding to a full suite of ongoing administration services. Supporting Organizations are a powerful vehicle for those who want to collaborate with philanthropy organizations while maintaining governance and oversight.
Ready to Start Your Supporting Organization?
With our network of trusted and proven legal professionals, we will draft and file the following initial creation documents and handle all filings and compliance:
- Articles of Incorporation or Trust Document
- Bylaws
- Conflict of Interest Policy
- Federal EIN
- IRS Form 1023 Application for Tax Exemption
- Policies and Governance
- Establish Board Member Structure
- Define Roles and Responsibilities
- Create and Implement Organizational Policies and Procedures
- Compliance Management with State and Federal Regulators
We specialize in setting up entities that empower grant organizations to fulfill their missions through strategic giving. Our full suite of foundation management tools and services will allow you to focus on the important work – giving. Allow us to handle the following aspects of ongoing administration:
- Grants Management
- Full online access for research and grant requests
- Grant recipient due diligence and qualification
- Set up and negotiations of all grant agreements
- Foreign grant setup and management
- Grant processing
- Grant reporting
- Grant responses and communication
- Annual and quarterly grant reports
- Accounting and Bookkeeping
- Tax Reporting and Filing
- Compliance Management with State and Federal Regulators
- State Registration
We help support grants for charitable organizations by handling every detail of the grant process with care and compliance. Our team has years of experience supporting donor organizations and ensuring their operations stay aligned with IRS and charitable regulations. Whether you’re supporting international initiatives or local helping organizations, we’ll make sure your charitable structure runs smoothly.
Supporting Organizations Frequently Asked Questions
What is a Support Organization?
A supporting organization is a public charity that exists to support one or more other public charities, offering financial, administrative, or programmatic assistance while receiving preferential tax treatment similar to public charities.
What is an example of a Supporting Organization?
An example of a supporting organization is a nonprofit that provides funding and operational support to a university or hospital, while maintaining its own governance but aligning closely with the supported entity’s mission.
What are some organizations that help people?
Organizations that help people include community foundations, donor-advised funds, and nonprofits focused on education, healthcare, housing, and disaster relief, each playing a role in addressing various societal needs.
What is a type I Supporting Organization?
A Type I supporting organization is structured similarly to a parent-subsidiary relationship, where the supported organization has significant influence over the supporting organization’s governance and activities.