Supporting Organization (SO)

A Supporting Organization is a "public charity" that is organized and operated to support one or more specified public charities. This wealth management instrument provides current income tax deductions to the donor at the time of direct contributions to the organization, and also provides transfer tax deductions for gifts of income interests in Charitable Lead Trusts or remainder interests in Charitable Remainder Trusts. A Supporting Organization allows the donor to involve family members in philanthropy and to vote on distributions to qualified public charities. This is a viable option for donors who want to be actively involved in the operation of the supporting organization and in passing on family values concerning philanthropic giving to their heirs.

How does a Supporting Organization Work?

A Supporting Organization is organized and operated as a public charity with the purpose of supporting other specified public charities. The donor contributes to the fund and remains actively involved in SO operations. Supporting Organizations are not subject to many Private Foundation regulations.