I could get a blank piece of paper approved for tax exemption. What happens if you create a foundation in good faith and let's just say the IRS does not approve it? The money that you deducted in that previous year, what happens to that? It's actually right on the IRS website. It states that... Let's say I do like business consulting. Could then I charge number one, a set fee, or you pay me what you think I'm worth, but instead of paying it to Caleb Williams... just donate it to my foundation. So that's a key component of that donor substantiation receipt. It says... Question number four is around the 5% requirement for this year. The IRS wants you to spend at least 5% of the assets on an annual basis. What is that 5%? When do I need to do it? How does it calculate? And it's actually based on the... How many private family foundations get audited a year? If you are worried about estate taxes, private family foundation should be something that you should at least be aware of. Dan Kaminsky. Welcome back to the Better World Show. Hey, thanks so much. It's a pleasure. It's been fun. We did a video over a year ago, 15,000 views and counting, on private family foundations. And that was very much like the master class. And it's been fun to see all the people that I've even heard from that are working with you or that have learned more about private family foundations. And so that makes me happy. One of the things that we're going to do today is there are a ton of common questions that you've gotten over the last year. And they're just common questions that people ask. even on the internet and all. And so what we're going to do in this video is go through the top 10 most common questions you get when it comes to everything relating to private family foundations. And so without further ado, first of all, give us an update on how this last year has been. I know that we're going to do another video on the new updates with the Big Beautiful Bill and how that affects private family foundations. And so if you enjoy this type of content and you're not subscribed to this channel, make sure to do so to get... Get that video when that drops. But again, we're coming up to the end of the year, and depending on when you're watching this, it might be end of 2025, it might be the beginning of 2026. All these questions will be relevant, but some people are getting their foundation done, trying to do it before the end of the year to save on taxes, and I'm wondering when is the last drop-dead date to get a foundation, because that's a... Whether that's part of the top 10 or not, that's a question that I have. Yeah, I mean, last call each year is actually different because it's based on when the IRS shuts down the EIN system. And so that's actually a state planning thing in general of like whether you're establishing a trust or if you're establishing a corporation or any other business that we don't know until very late in the year. So just context of last year. So this is now 2025 talking about 2024. The last one we set up was December 28th. that was the last day that the IRS would issue an EIN for the year. So it's not up until December 31st. There are actually unique ways that you could do that, but that's too advanced for this video. But typically, I'm saying like the within about a week of the end of the year is probably the very last minute because you have to get the foundation established, you have to get that EIN, and then you have to open up a bank account to at least transfer cash. If you're going to transfer anything other than cash, it's probably too late. You're probably thinking more so like mid-December because you have to get a brokerage account established and be able to transfer those assets into and make sure that everything journals over before the end of the year. And donating at the end of the year could be its own video, but that one we did the last year, we rammed it through and then they wrote a check to the foundation, put it in the mail, has to be specifically USPS and certified so that we know that it was postmarked before the end mails it back to themselves, they deposit it in the following year, it is still deductible in that previous year. So that's kind of the loophole. And this is actually not on the 10 question list, but one of the most common questions aside from this list is, is my contribution still going to be deductible even if I am not approved before the end of the year? Because if you think if we set up a foundation, even in December, it's highly unlikely. that the exemption is going to be recognized by the end of the year. So there's two different ways, you know, the short form and the long form to get the IRS exemption. The short form is typically 30 to 45 days to come back. The long form is anywhere from 6 to 12 months, and that's actually getting longer. So it's not realistic that that exemption is going to be recognized. And I say that specifically because it's not actually being approved. When you establish a foundation, as long as it's done properly, the provisions within the document actually states that it is exempt. So that provision is actually provided by Congress, not by the IRS. The IRS is recognizing that status saying, rubber stamping, and saying, yes, in fact, the foundation is an exempt organization. So that's what allows you to have the deductions, even though it's technically not recognized. And when you get that letter from the IRS, it states that it is retroactive to the incorporation date. So just to make it plainly, if you started a foundation today. wasn't approved until the next year, that exemption is retroactive to today. So any contributions after the establishment and before the end of the year are still tax deductible. Well said. That was a long-winded way into the 10 most common questions plus a bonus one. And I actually just used AI to look at my inbox and say, what are the most common questions? And so now it's like, well, maybe AI is not as smart because that's actually one of the other most common ones. But the first really is what is the minimum funding amount? You know, if you're establishing a foundation, if you do any sort of research, there's going to be all these things about you have to have tens of millions of dollars and this is only reserved to the wealthy of the world. And that's actually why I got into this in the first place is I wanted to establish my own foundation. And I'm not a multi-hundred millionaire. And I've gone round and round and round on what is the optimal amount. And the answer is it depends. So I feel like people love that answer, but it's the same when it comes to insurance. It's like people want to know, like, what what's the minimum I can put? And I'm like, guys, that's the wrong question to ask when it comes to insurance. And I would almost imagine that it's similar to when people ask you what the minimum if you're already asking what the minimum is. Maybe this is not for you. Exactly. And so I used to say if if you're not even itemizing currently, you would have to. I mean, if you're if you when you file your taxes, you either standard deduction, which for. Coming up 2026 is going to be $32,500 for married filing jointly. So 93% of Americans don't itemize, meaning that they have deductions, itemized deductions in excess of that amount. So that means literally 7% of Americans technically would qualify to actually have their dollars be deductible. And this is another side. It's like the charitable world, they're saying, hey, your contribution is tax deductible. It's tax deductible, which is true. but you're not actually seeing that tax benefit. So in order for that to be true, you would at least have to exceed the standard deduction. So at the purest minimum would be something like $35,000. But then we're getting into the complexity and the cost. And at that point, it's probably not very efficient to be at that lower level. So I've gone away from that and I make it very simple now. If you can write a check for at least $100,000 and not think twice about it, a private foundation might be a good opportunity from a charitable standpoint. If you couldn't do that, or if it would be a big stretch to do that, private foundation probably at this point is not a good opportunity for, you know, establishing some sort of charitable benefit or charitable fund. Something like a donor advised fund might be better. Just direct giving might be better. And people tend to think in tranches of tens, essentially. So it's like, I'm going to fund 100,000 a year. I'm going to start with a million. I'm going to start with 10 million. And then past 10 million, it's totally into dynastic and generational wealth. and it's It's totally random at that point, but people typically think like, yeah, I'm a round number, 100,000 million, 10 million. Two questions off of that. Question number one, which I think you pretty much answered, if you don't hit that minimum, donor advised fund could be a really cheaper way to at least get the concept of the foundation. Do you want to explain what that is? I know you have a question later that you're going to go over the difference between a private family foundation and donor advised fund. What is a donor advice fund? What are the pros for someone maybe saying like, hey, I want to work towards a foundation, but I'm only going to give 40 grand. And so it sounds like I'm way out of bounds as it relates to foundations making sense. That's the first question. And then I'll let you answer that before. The team's asked me to keep my questions one at a time. It's hard for me because I have like 10 things going on in my brain, but I'm working on it. So there's really three buckets. You're going to give directly to the organization that you currently do. you are going to give to a donor-advised fund or you're going to give to a private foundation. We'll just keep it as simple as that. When you just give directly, you're still going to get a tax deduction for that, but that money is gone and you no longer have control of it. If you give to, say, a donor-advised fund, which is set up through a custodian, so what a custodian is essentially like Schwab or Fidelity or Vanguard or NCF, the National Christian Foundation, they have donor-advised funds. There's community foundations that now have donor-advised funds. and as the name implies, you get to advise, but you don't have legal control. And so you're essentially sending money to an account that is controlled by a separate entity, and that money is invested, and you have the ability to donate that to qualifying 501c3s. So the main difference between direct giving and a donor advised fund is you can give now, get that tax deduction, but then decide where that money goes later. That's the main difference because the tax deduction is the same or tax deduction opportunity is the same, but the money's not going directly to charity immediately. And donor advised funds are kind of like black boxes because you can donate to them and actually never be charitable if you don't want to. Ultimately, the money is going to charity, but there's no current provisions to require you to give any amount. And that's a stark difference to the private foundation where you do have legal control. It is a separate entity. as being on the board, you get that legal control. But some of the provisions to have the private foundation, and one of them is the 5% expenditure requirement, which says the IRS wants you to spend at least 5% of the assets of a foundation on an annual basis. And so that's where the foundation as well will allow you to give now and donate later. But there is that direct provision to be able to spend the money out of the foundation, whereas that's not the case in the donor advised fund. Great, great. I'm not going to ask follow-up questions because we'd be on this for two hours if I did that, but I appreciate the takeaways there. The question that I have is, what would you tell the person that was like me when I first got started and you when you first got started? You set up a foundation maybe with not hitting that $100,000 year one, but it has really helped me work towards thinking bigger as a family. just in a lot of different areas. And it's like, we're not maximizing the benefits of like a family foundation from like what it could look like from a family. What would you tell the person that might want to give 50, 60, 70? And once the idea of working towards a foundation, would you say, wait till you do the hundred? Or if you're like, no, like it might still make sense to put less in if you see the other benefits. Does that question make sense? It does. And I... That's where I go. It depends route because it really depends on the mindset of the person and their long-term vision of what they want the foundation to be. Because the similarities to the foundation and life insurance are kind of uncanny because we're talking about tax deferred, tax-free growth, tax-exempt growth. I mean, you can slice the bunch of different ways, but you contribute to the foundation. You can grow it in a tax-free environment because it's 501c3. It is exempt. So by not having the money in the foundation. If you're growing it elsewhere, you're still going to be subject to taxation. By donating it to the foundation, you're getting the immediate tax deduction. So that's saving you money on the upfront and you're growing the money tax-free. And then ultimately the money is being utilized in a tax-efficient manner. There's fringe benefits or possibilities and things like that. But that's where, if you think about this over a long period of time, if you just run a pure investment calculator, which isn't fair, but basically saying, hey, we have a certain amount of money on an annual basis that's being put into the foundation. It's going to grow at a reasonable interest rate, not subject to taxation. What would that look like over the next 50 years? What would that look like over the next 100 years? I'm working with a family that is in the seventh generation of having their family foundation. If you look at compound interest over 150 years, it doesn't matter what the volume of money is because it's still just purely based on compound interest is going to be a huge sum of money. And that's why I hearken the foundation to be a perpetual giving fund or a sustainable giving system is whether you put another dollar or asset into it or not, it will ideally continue to grow as long as it's stewarded properly. So that's where even if you're under that $100,000 mark, if your goal is to do that on a consistent basis over a long period of time and then have the opportunity of some, maybe there's a sale of a business or income increases or other family members want to participate or you, upon passing, you do have a quest, which is actually very rare. You can continue to fund the foundation, then you have the successorship component. You have your kids and your kids' kids take over that and steward that, and your impact continues to grow. That's really the point. My prediction is that the private family foundations are going to be amplified in estate planning because with really wealthy families, yes, you can do trust and all, and you're going to continue to do that. but the foundation very much gives purpose to you know trust fund kids who might struggle to find a purpose and so you're giving them an ability to you know have a salary that could be reasonable um that they could live off of but then require there to be some type of like actual actual giving and actual value and I think a foundation is automatically set up to do that well. Anything you want to say before we get on to question number two? Yeah, I mean, just to that, estate planners, attorneys, they're really good at transferring assets tax efficiently. They've historically been really bad at transferring values. And that's where what you're saying is like the family component of the Family Foundation is to have those conversations of what are our family values? What is the vision for our family? What does stewardship of the family resources look like? What does it look like to be generous? And it's almost like a charitable business in a sense of... You're having conversations on an annual basis of, well, what didn't go well? How did the investments perform? Where did we give to? How do we want to allocate our resources? And doing those in a low-stakes environment and bringing the kids into that. And I'm seeing this firsthand of the current dynastic wealth. They have all the trusts. It's what all the videos are about. All the gurus, you know, hey, set up all these trusts and everything. That has been what has occurred in the past. What I'm seeing in the new wealth and the people that are selling their businesses now, they don't want to burden their children with the wealth. Like it's truly becomes a burden of this, this idea of, Hey, we'll set everything up for six. You know, they'll never have to work a day in their life. Well, then we're basically saying you don't have to create any value either. And then that's where you hear the shirtsleeves, the shirtsleeves in three generations is if they don't have to work, they're not creating value. They just become consumers and the money is gone in an instant. And that I have. again, seen firsthand that has been avoided through the usage of something like a foundation. I love it. All right, let's get to question number two. How long does it take? So this is again, you know, whether it's start of the year, end of the year, anytime in between, the answer is typically the same is, you know, the process to establish a foundation is, you know, drafting articles of incorporation and the bylaws and getting the EIN from the IRS and applying for the tax exemption. And opening up a bank account and all of those things, the actual establishment of the foundation can be pretty quick, typically three to four business days, meaning we have the entity established. Then we have the opening of a bank account, which banks are finicky sometimes. Opening an investment account can take a couple days as well. So give or take, realistically, probably seven to ten business days. So that's why, again, if you're close to the end of the year, you probably want to be a little bit closer to the front end of December. And then we already touched on the tax exemption. That can take a very long time. And there are ways to expedite that. You can provide an expedite request. This is going to be reserved for sizable amounts of money. I've had cases where an attorney is kind of skittish and they want the exemption approved before they make a huge contribution. What happens if you create a foundation in good faith and let's just say the IRS does not approve it? Does the money that you deducted in that previous year, like, is that what happens to that? Does the IRS still give you, grant you the ability? No, no. So it's actually right on the IRS website. Cause again, this is a pretty common question. And it states that there's basically, you can't go out and solicit contributions and say, Hey, your donation will be tax deductible until you get that letter. That does not mean you can't contribute and still file your taxes as if it is exempt, because that's actually the bookend to that is the IRS says you should operate as a private foundation until you are recognized as that status. So when I'm working with families, I say, hey, you absolutely can contribute to it. Now, we're not guaranteeing that they will get those tax deductions. But again, as I stated previously, the foundation, it is a foundation. The way it is set up, it is exempt. So, It's not really reasonable to say, especially with our track record, we have 100% success rate of achieving tax exemptions. How many people that get denied just period setting up foundations? I've never heard of that. This is a hot take. I think I could get a blank piece of paper approved for tax exemption. That might be a whole other video in itself. That's going to show up in the hook, by the way. I would love to do it for the experiment. I don't really want that with my professional record to be like, that's what I've done. But it's so bad. I mean, I've seen these time and time and time again. People have bad advice. They set up a foundation because there's huge misinformation of what a nonprofit is, what a foundation is. Very confusing. They work with random people that set things up, and they don't have a foundation. I actually worked with a financial advisor. He said, yes, I have a private foundation. I go look it up. It's a public charity. It was designed as a public charity. It is not a private foundation. And so it's like that it drives me crazy because it there is a specific way to do it. And if you do that right. I can almost, I won't say I'll guarantee you, but I can almost guarantee you that you will get a tax, a favorable tax exemption. And this is what I would also say is even though the IRS says you are an exempt organization, doesn't mean that if you were audited and they actually looked at your incorporation documents, that that would actually stand up, even though they said, yes, yes, you are. If they ultimately look at the documentation, because if you do the 1023EZ, you don't have to submit your document. That's why I'm saying I could get a blank piece of paper approved. It is possible, but it's unlikely. Yeah. so To answer question number two, seven to 10 business days on the short end that you could at least get the thing set up. You need to figure out what your name is. You need to set up a bank account. You need to come up with some type of address. Anything else that needs to be happened to get it done? No. I mean, if you're really desperate, we can get it done in a day. It costs a lot of money, but we can get it done in a day. And it is that process. So we set them all up in state of Delaware. And there's a lot of reasons for that. But basically, it's it's getting a registered agent. So it's required in Delaware to have a Delaware registered agent. You draft the articles, draft the bylaws, submit the articles to the state. And this is this is they snail mail documents still. So that's why if you pay for FedEx, I can get it the next day. But you can also pay a lot of money and they'll email it to you. And yeah, it's like within the next hour. And I've done that before. And they actually called me and said, are you sure you want to do this? I said, yes, I want to do this. That was the December 28th one. And so once you get that back, get the EIN. Once you have those two documents, the certificate of incorporation and the EIN, that's your ticket to go open that bank account. There are other things behind the scenes, drafting resolutions and all those things. But ultimately or fundamentally, those are the key components. One of my favorite things to do is send foundation stuff to Dan and have him just rip it to shreds. There is a video we might do in the future. there's a Pretty well-known person went on a big podcast, talked about a private family foundation, and Dan, within 15 minutes, showed a lot of issues, including this person's address, you know, cell phone number, all these things. And it just cracks me up on the, like, this is a person that's pretty well-respected, and it's just amazing how, like, there's so many issues and so that's a That's probably not one of your 10, but that's just a fun fact. So if you have a private family foundation and you want Dan to take a look at it for you, I'm sure there will be an opportunity. We'll include your info down below for them to get in touch with you. All right, let's go to question number three, and I think question number three was potentially already addressed, but I'll let you readdress it. The basic question is, is it possibly done this year? And so depending on when this drops or whenever you're watching this, the answer kind of remains the same. Ideally. you know, the, the latest would be sometime in the second to third week of December. It is possible, you know, that the extreme end, if, if you want to do that cash contributions are the least tax efficient, but it is, again, it's possible if you really need to get those tax deductions done, but this is really like my favorite people are the ones that wake up, you know, from come tax time. They're like, gee, I paid a lot of money in taxes, you know, come April, or if they extend to September, October, and they're like, I don't want to do this again. We have that conversation then and we have lots of time to talk through everything and get everything established and we're not rushing and everything's fine. And then their CPA is happy and their attorneys are happy and all those things. So yes, it can be done. It's not as, you know, you can't just like magically make it happen, but we can get it pretty close to the end of the year. Love it. Okay. Question number four is around the 5% requirement for this year. Why don't you unpack what that is? Yeah, so this trips people up, and I've just recently come up with this way to describe it a little bit differently. So we already talked about it. The IRS wants you to spend at least 5% of the assets on an annual basis. And I specifically say spend because it truly includes anything in relation to the charitable purpose of the foundation. So most often we're going to be saying, hey, a grant to another 501c3 is part of the 5%. It's a charitable grant. That counts. Like that, that's. typically what the IRS wants to do. But any other expense in direct relation to the charity, whether it's administrative expenses, travel expenses, you're buying this time of year in December, food, clothing, and shelter, providing that kind of stuff would be considered a direct charitable activity. Those count towards that 5% requirement. So it comes like this time of year. Well, what is that 5%? When do I need to do it? How does it calculate? And it's actually based on the average assets of the foundation throughout the year. If you had a full calendar year, we'd look at the average assets from January through December, calculate that all up, and 5% of that is actually technically a little less than 5% because you can withhold 1.5% for cash, but that number becomes your 5% expenditure requirement. but it's based on the previous year. So what that means is there's no requirement in the initial year that you contribute or establish the foundation. And just for argument's sake, let's say December 1st, you establish a foundation. The average amount is gonna be prorated because it's only been in existence for a month. So your 5% for the initial year is already gonna be far less than 5% of the total. And that carries forward to the following year. So when we file the tax return, for 2025 or whatever the previous tax year is, that's actually the only time we know exactly what the 5% is because it's a moving target each year. The investments are changing, the expenses are changing, and so we actually don't know. And so even the biggest foundations, they are always budgeting from the year previous. Now, in those cases too, they're also sometimes spending more than 5%, so that's a whole other thing. But we file the tax return, We know exactly what the... The 5% was for the previous year. That becomes your 5% for that year. If it was already satisfied, there's no requirement to spend in that year and you wait until the following, the second year. File a tax return, you know exactly what the 5% was. That's what your budgeted amount. So this, again, goes back to personal ideology. Some people, they want to go as, especially in the early years, they want to keep as close to the 5% or exactly at the 5% so that more money is available to continue to grow the foundation. more mature foundations are spending somewhere between six to eight percent of their foundation assets on an annual basis and typically through additional contributions and investment growth they're far outpacing that anyways so that's that's the general premise is there's no requirement now and this is another hallmark of the foundation you can give today and decide where to distribute tomorrow and or next year yeah and you will have a question addressing the difference between a a donor advised fund versus a private family foundation because both of them are similar in that aspect. You can invest both, but I would imagine there are differences and that's something that's going to be addressed. So the next question is the question, drum roll please, the one that everyone wants to know is how much does it cost to get a private family foundation set up, which seems very similar to the minimum funding amount, which I'm sure that's baked into the answer that you gave. But when someone asks you how much does it cost to get a PFF, set up? How do you answer that? It depends, right? So this is a matter of who do you work with? And you and I went through this years ago as to how do we start a foundation? Who do you go to? This is where you start seeing that information that this is only reserved for the super wealthy. So then it almost feels like a behind the doors conversation and it's going to cost all this money and all those things. What I would say is expect to spend somewhere between $5,000 to $10,000 to establish the foundation. When I say that it is truly to the point where you're opening up accounts and you can make contributions to it, I think that's a reasonable amount to expect because you have attorney fees to draft all the documents and the IRS application itself is 40 pages long. And so there's a lot that goes into, there's a lot of fixed costs actually too, because the IRS application is $600 in itself. The incorporation fees are in the hundreds of dollars and it just goes on from there. And so you might as well expect that. And what I would say is if somebody is saying, hey, I can set up your foundation for a couple hundred bucks or like a thousand bucks, I would be questioning what it is that they're actually doing and what they know or their know-how. Like this is not something you go to LegalZoom. Like it's just I used to be the person like, oh, you know, that I could do it. I can figure it out. And ultimately I did figure it out. by going to all the major firms that do this and realize they're all doing essentially the same thing and charging wildly different amounts. I've heard people say that they were quoted $50,000 to have a foundation established. And I was like, what is going on? And to be fair there, it's a premier law firm. They can charge those amounts. People pay them and that's fine, but it's not necessary. So I would say if somebody saying it's going to cost more than 10, you know, 10,000 plus 10 to 15,000 plus. Probably should get a second opinion. You likely see somewhere in the $5,000 to $10,000 range. And then the ongoing costs are wildly varied as well. And this is the fun part for me. I get to look at the tax returns so I know what people are paying. There are still people paying bargain rates on an annual basis to just at least get the tax return done in the maybe a couple hundred dollars a year range. Those people, if they're audited, it's going to be problematic. I'll just say it. And this is, again, like there's only about 100,000 private foundations in the country. There's 850,000 tax preparers. So it's just not realistic that the average return preparer has ever even seen a 990 PF, let alone prepared one. How many private family foundations get audited a year? Very few. So this should be another one of, is this going to cause me to have more auto risk? It's a red flag. Is it a red flag? This is one of the most baked into tax code tax strategies per se that you can do and has been actually foundations have existed predating the tax code and the tax code was updated to reflect the foundation. So like John D. Rockefeller, when he established his, he wasn't even getting a tax deduction for contributing to his foundation because the The tax code didn't exist. And so then it was in the 1913 and then 1917 when the charitable contributions actually came into play and the rest is history. So when you're setting up a foundation, it is a separate entity. So, you know, it's not you. It has its own EIN. And so even if the foundation is audited, it has really nothing to do with you. It may get to the point that it has something to do with you because you contributed to it. But if the foundation is doing something, you know, you. might be a director of that. You might be in control of it, but you are not the owner of it. And so a lot of times it has direct relation to the foundation itself, but it's very rare to happen. You know, there's 1.8 million total charities and on an annual basis, like 2,300 of them get audited. So it's extremely, it's small, it's getting smaller. And the last thing I'll say on that is 83% of the time they do have some sort of change in tax. So that just goes back into people are like, oh, can I do this myself? Yes, maybe, but it's going to cost you more in the long run. A lot of people I work with have had foundations for a long time. They've been mismanaged. They're paying literal six figures plus in excise taxes simply because they're doing the tax returns wrong or they're utilizing the funds improperly. Yeah, that's wild. And we'll move on due to time, but I have a bonus question if we have time at the end. So stay tuned for... My bonus question at the end. I'll go quicker here. So what can you donate? And I call the foundation a cookie monster of charitable vehicles because you can quite literally donate anything that you can get valued. And there's a lot of things that go into that. But by and large, most foundations are built off of publicly traded securities. So things like Tesla and NVIDIA and Amazon and Google and Microsoft, if you have individual stocks that are highly appreciated, those are typically the most favorable to donate because. their tax advantage in the sense that you get a fair market value deduction, you avoid the capital gains tax if you were to sell it, and you still have the asset within the foundation. And to me, the fourth benefit is you're not outlaying cash to fund the foundation. So that's why you'll see the biggest foundations are all built off of publicly traded securities. So you have cash, which is very common. You have publicly traded securities. And then the third is all other assets. And those are valued at the basis. So not as tax favorable for the contribution. But it's very favorable for avoidance of capital gains. So if somebody had a piece of property in California that they bought for $100,000 back in the 70s and now it's worth $2 million, they don't want to pay the cap gains on a $1.9 million. They would contribute the property to the foundation. The foundation sells it. It now has $2 million and can reinvest that. So in putting stock into your private family foundation, if it's from a public company, does that… work the same way that donor advised funds work or if you yes it works the same the limits are different so a donor advised fund you can give up to 30 percent of your adjusted gross income in stocks with a foundation it's limited to 20 percent of your gross income so if you made 100 grand you can give up to 20 000 in stocks with the foundation and up to 30 000 with the donor advised fund how does um the billionaires get around that because you know really Billionaires don't pay themselves much income, and yet their stuffing seems like a ton of money into private family foundations when they're accompanying IPOs or whatnot. So how does that work? So at the bigger levels, they actually care less in aggregate of their personal tax benefit, because we're thinking there's multiple levels to taxation. You have your income tax, you have the avoidance of capital gains tax. And then for them, they're avoiding estate tax as well. So there's a couple things at play. I always use the example of Mark Zuckerberg donating $2 billion of Facebook stock in 2017. He got a $2 billion income tax deduction. I don't know what his personal income tax situation is. He might have sold something else and he wanted to offset that in some way. But whatever it was, he also carries forward anything additional. So if he didn't fully use that in that year, he carries forward anything in excess up to an additional five years. So there's that component. By donating that, he avoided $660 million of capital gains tax. Shout out to my California friends. And then on top of that, every time he's moving dollars out of his estate, he's avoiding estate tax. That's right. So what I found, and this is, again, changes your thought process. The wealthier people I've worked with, they are less concerned about their income tax and more concerned about the other taxes that they are accustomed to. Yeah. So if you are worried about estate taxes, a private family foundation should be something that you should at least be aware of and think about. That makes a lot of sense. Any other things that we did not cover when it comes to what you can donate? Like I said, anything you can get valued is subject to appraisals in a lot of cases, but I've seen uncut timber, livestock. Angelina Jolie had her wedding photos valued and donated to her foundation. What about painting? Yeah, good old painting. So yes, absolutely. Artwork is a huge storehouse of value. I don't get it myself personally, but yeah, value. A lot of rules around that. But definitely possible. And there's a famous case of the gentleman in California that has like $150 million estate that is completely within a private foundation. And about 100 million of it is his artwork in like a garage. And he qualifies as a 501c3 because like two times a year, he opens it up to a curated list, let's say, but they are from the public. And because they get to go enjoy the artwork, it all qualifies as deductible and part of that 5% expenditure. everything in relation to the entire estate is paid for all done in a tax efficient manner you should buy the domain creativeaccounting.com all right let's uh then the next question is can others donate to your private family foundation estate planning is what ensures that everything you've worked for ends up with where it's supposed to be with who it's supposed to be with we've helped entrepreneurs high income earners and even retirees create multi-generational legacy plans with trust, wills, guardianship documents. and more, all with unlimited revisions and no ongoing fees. If you want to get started with your estate plan or you have an existing estate plan that you want us to review for you, then click the link in the description or tag comment below to learn more. Back to the video. Yeah, absolutely. So again, we touched on this previously. While you're in the process of getting that exemption, I wouldn't necessarily say, hey, we're a 501c3, donate to us because it is possible that that donation would not stand up. But once you have that letter, it says we are pleased to inform you that you are exempt. from Federal Income Tax Center 501c3. Once you have that piece of paper, that is the permission slip to go garner donations from others. You are a qualified 501c3, just like any other 501c3 that you donate to. If your friends or family members or co-workers or colleagues or anybody wants to contribute to your foundation, they can do so and get a tax deduction for doing so, as long as they get a donor substantiation receipt from you or from your foundation. Question on this. What is the best way to actually get donations? Like, it's one thing to say, yeah, people can donate, but what's a convenient way to actually, like, get the money? And then do you, like, just shoot them an email? Do you, like, how do you let them know that they get a deduction for their CPA? I will say, you know, part of it being a family foundation is typically it's funded by a single source or family. Like, it is actually very least common for a traditional family foundation to go soliciting. charitable donations. But if they do that, if it's low scale, I would say, you know, just have them send a check or wire funds or something like that. And that's something that we handle is sending those donor substationary receipts. If it's going to be a bit of grander scale, like I have a client that did a Charity Pickleball event back in July. Yeah. So they did a full event. It was very impressive. They had the whole thing and had people come out and we used a third party service to basically... garner those donations. I mean, all the technology now, you can donate a million different ways, whether it's credit card or Venmo or pick a thing. And then the software actually takes care of sending out all the receipts immediately. So if it's going to be more people, I would suggest doing something like that. If it's a little bit lower end, we take care of that. Another question that is based off of this is, you know my wife, she's learning different medical things from like, it's called CFT. And so she right now is just... Straight up blessing people with it's like a form of massage, but she doesn't necessarily have all the qualifications. So she's she's not interested at all to be open for business. Like it's just one of those things where she learned for our family, for our future kids and all. And so that's one of the things that she's she's doing when people have wanted to pay her because she's really good at it. And she she can't accept that money question for you. And again, this is this could be like murky question because. of medical. So let's assume there's no medical liability. Could someone, could she say no, but you could donate to our private family foundation. I'm going to bless you and you can donate whatever you want. What is a, have people done that? Like I'll maybe a cleaner way to ask that question is like, let's say I do like business consulting and, and I could just like consult you. Could then I charge, number one, a set fee? Or number two, could I just set it up to be like, hey, I'll work with you, and then you pay me what you think I'm worth, but instead of paying it to Caleb Williams, just donate it to my foundation? So that's a key component of that donor substantiation receipt. It says no goods or services were provided for this contribution. So that's where people get into trouble when they do like gala, you know. Charity galas where there's a dinner involved and there's raffle tickets and things like that, that technically your deduction should be reduced by the amount of value that you receive from that event. Oh, interesting. Okay. Yeah. So people get tripped up by that all the time. And again, we're not talking huge dollar amounts. Some cases we are, some of those charity events are extremely expensive because the part of the ticket is like part of your contribution. And then it's... it really should be from the events that you're coming to. They will typically send you something that says, hey, the meal was worth X amount of dollars in market value type of thing. What you're describing, what I would typically see more of is like, you have a business becoming more popular. You have a business and you just say, a percentage of revenues or all the revenue is being donated to the such and such foundation for this cause. And so it may not be like exactly what you're describing. But it's basically saying like, hey, 100% of our proceeds go to supporting this cause or something like that. Okay. Okay. So that answers my question. That's actually very, very interesting. I'm sure that's another thing that people are not compliant on across the board, but that's something that's a takeaway for me. Okay. Number eight is the big question that I have. I think we can make a whole separate video on this in the future, but it's the difference between private family foundations versus donor advised funds. And donor advised funds seem to be the craze when it comes to financial advisors and fee-only advisors and all. I just hear this. I hear a lot of people, videos. I hear a lot of people talking about donor advised funds. And they almost make it sound like they're better than private family foundations. And they might have some advantages, like we mentioned in question number one, when it comes to the actual cost of setting something up. But in your own words, what's the pros and cons to... private family foundations versus donor advice funds? Yeah. So again, I would first say, of course, all I do is private foundations. So you could argue that I'm biased, but I also tell people fairly often that something other like a donor advice fund is a better solution for them. So I'm not here to say the private foundation is the end all be all because it's not. I just look at the breadcrumbs. And I think I stated this on the last video. If you look at the Forbes 400 list, 83% of those families have a private family foundation. The asterisk to that is they might also have a donor advice fund. Because you can donate from your private foundation to your donor advised fund. That satisfies the 5%. And then, I mean, realistically, you could never be charitable, meaning because you're avoiding the 5% at that point because you're still sending it to an organization that you control per se. So, Dan, I could set up a donor advised fund and then my 5% expenditure could go into the donor advised fund. Correct. And that would that's crazy. Yeah, so this is from a privacy standpoint. of what we do sometimes is if somebody doesn't want the public to know where they're donating, they will use the donor advised fund as the vehicle to make their giving because it might be, you know, pick a reason, but if they want a little bit more anonymity as to how they're giving, the downside to that, and this is kind of going into the differences, is a donor advised fund can only give to qualified 501c3s. So that's going to be public charities and operating foundations. What we're talking about specifically are non-operating foundations. So you can't go from a donor advised fund to a typical family foundation, but you can go from a family foundation to a donor advised fund. So, you know, the setup would be like a anonymous trust or anonymous LLC that donates to the foundation. You're still going to be on as directors and or officers. So like your name will still be on there as a requirement. and whoever contributes. requirement as well. But if we have an anonymous source and then the funds are being distributed to an anonymous donor advised funds, that's a good way to create some anonymity around there. But that's one of the downsides of the donor advised fund is it's pretty limited in how you can donate. And I've talked to some very angry people that put a sizable amount of money into donor advised funds because they're being touted as the coolest thing since sliced bread. They've realistically not been around. too very long. It's similar to the 401k of like, hey, actually, the private foundation has existed for a long time. Permanent life insurance has existed for a long time. And here we are with the donor advised funds that got really hot in the last 10, 15 years because the market took off and the custodians, Schwab, Fidelity, Vanguard realized, hey, we can tell people they're being awesome by setting up a donor advised fund. They get a tax deduction and they get to maintain custody of those assets. So they get to, and that makes the financial advisors happy because, hey, we're not losing custody of those assets either. And we can still charge a fee on that. And so they've, they've taken off like crazy. Now, again, in context, there's, I think as the last I saw donor advised funds have about 200 billion within them. So that is money that's earmarked for charity. I think it's still a great thing. The challenge is there's no requirement to give out of it. Private foundations are going to surpass $2 trillion. pretty soon here. Last I saw was 1.8 trillion and that was like a month or two ago. And if I had to guess, donor advised fund, there's more donor advised funds than private family. Exactly. So to come back to donor advised fund versus private foundation, I think if you don't have any realistic expectation that your total fund would reach a million dollars in your lifetime, I don't think a private foundation is a good solution. I think a donor advised fund is probably a better solution. That's irregardless of contribution level, just like purely money. over a period of time, times some sort of investment amount. Like that, hard and fast, done. If control is really important to you, a donor advised fund is not going to be a good solution for you because again, as Naaman implies, you don't have legal control of the asset. Once you contribute it, you can advise upon it. And whereas with the foundation, you still don't have ownership, but you have legal control of those assets and also the direction of the assets, meaning you have full control of the investment as long as it's... passive income sources. And you also have a, the foundation opens up a whole charitable Rolodex of instead of just giving to public charities or, you know, what qualifies a public charity foundation allows you to do direct charitable activities, allows you to do disaster relief, allows you to do the most popular reason is international giving, um, allows you to give to organizations that wouldn't qualify as a five one C3 allows you to do a lot of do a scholarship program, do award programs, like do trips. Yeah. Do trips, do annual family meetings. It just, it's one of those things of if we hit, if we, if we're like, yep, we're going to at least have a million dollars at some point control is important to me. Like there's really no reason not to like my favorite people are like, once I started learning about this, I was wondering like, why doesn't everybody have a private foundation? It's like, okay, hold on. You know? but same, same epiphany around. If you really dive into like whole life insurance, you're like, okay, this is a lot better than I even thought. Like the more you learn about whole life. the more you fall in love with it. I would imagine that's something similar to this. And one thing that you didn't necessarily mention that I want to mention is I think of it, I think of like a private family foundation is like running your, your, your giving like a business. And it's like, if that's attractive to you, then that's one thing. But if that's not attractive to you, then it's like, okay, then like, like, don't do it. And that for someone like myself, even like I got a foundation. through you, even before I hit the $100,000 giving mark. But I that's attractive, like wanting to build towards something. And I want I want to be I want to run my giving like a business. And so that that was like, that was very attractive from that standpoint. But some people would look at that same thing and be like, the last thing I want is more, you know, more quote, unquote, work. And then then it's like, that needs to be factored in. Exactly. And What I hear most often is it provides structure to the giving, whereas previously it was very haphazard. There was no business plan. It was just like, oh, somebody has a problem or has a need. There's always going to be more problems than there are resources. And the foundation creates a buffer between the solicitations. And this happens as you're more in the public eye, as you have more resources, so do come the solicitations. And so some people that I work with, I don't want to say simply like the main reason, but like one of the. Big reasons they start a foundation is to create a veil of separation between them and their giving so that they're like, hey, this is where you go to submit what you want instead of just like people beating down their door and their phone and like, hey, give, give, give, give, give. And so that's another reason too is it creates that structure and you can turn certain things into be taxed, at least be using tax deductible dollars. And that's where some of those fringe benefits I talked about. Cool. Cool. All right. Question number nine is how does the tax benefit work? Yeah, so this, again, I've gone running around and around, but basically there's the limits, right? So we talked about this before of you can donate up to 30% of your adjusted gross income. in cash. So if you made $100,000, you could donate up to $30,000 in cash. You can also donate up to 20% in assets, but that is in total. So you could give up to 20 in assets and additional 10% in cash or 15 and 15. If you go over, you get that carry forward. But ultimately, the way to think about it is whatever your marginal tax rate is, unless you get bumped into a lower bracket, that is how much tax you'll be saving. So for my California friends, if you're getting taxed at 50%, every dollar that you donate to your foundation, you will save 50 cents in tax, and you still have that dollar within the foundation. So at the higher end of the scale, you can be talking about saving hundreds of thousands of dollars in taxes and still having that money to be able to invest, grow, and then ultimately give. And that's really the key component is we're reducing that tax liability today. takes your adjusted gross income, reduces your taxable income. And then that's where, again, if you donate assets, you're not coming out of pocket in order to do that because you're ultimately sending more money out the door by being charitable versus not. But a big chunk of that is still under your control. Does that make sense? Yeah, it does. It still doesn't make sense if you don't care about being charitable. you're never going to have the tax deduction make sense but if you actually want to be generous it's like a great benefit and allows you to write a check get that in order and be able to think through or pray or grow your your ability to give like later so it's a way to be like generous and defer your giving exactly for lots of different reasons but if you don't care at all about being generous. It doesn't make sense to pay a dollar to save 50 cents if you don't care about that dollar going somewhere. I know the next question is going to be potential benefit that your family could get from this, but you should not do a foundation if you don't care about being generous. If your goal is to just save money on tax, this is not a... good opportunity for you. And that's one of my first questions is like, what are you trying to accomplish here? And if there's no veil, like even remote veil of, of actually wanting to be generous, I personally don't want to work with that person. Cause that's not the point of this. Like just send the money to a charity at that point. Like, why are we, why are we adding complexity? Why are we adding costs? And that's something from the minimum funding amount too, is I never want it to cost money to be generous. And what I mean by that is if you're currently being generous. And now I'm saying you're going to do the same thing, but it's going to cost you money to do that. That doesn't make sense. That's less money going to giving. That's a great, that's a great actually way to define that is if a foundation allows you to be less generous, you shouldn't do it. It should only, it should only open up your ability to be more generous now and in the future. That's, that was well, that was well said. Last question is around paying your family members. members and This one is very interesting, very attractive, and also red flags could pop up because you could even see this, Dan, as like an emergency fund. And what do I mean? You could donate to a foundation, and if the business goes south, you could figure out a way to have the foundation pay your family members, and it could be a way to funnel some of that money out of the foundation. I'm just trying to be as frank as possible. When I hear paying family members, I think of a loophole of worst-case scenario emergency fund. But I do also know that this could also be paying your children or grandchildren. If you're a super wealthy family, it could be a way for them to get income without being a trust fund entitled brat. Yeah, so a lot of things to say here. And what I start with always is if somebody says, can I? like start a foundation and I take a salary, I explain like, what are we doing here? Like you, you get a tax deduction for donating to your foundation. Now you're going to take a salary and you're going to pay income tax on that. It's a, it's a net neutral and now we're adding costs to it. So like that, that is not a great solution. However, it can be if it's some form of future opportunity. This makes the most sense for medical professionals. If I'm really busy being a surgeon right now, I have high W-2 income, and I want to be generous. But I don't have time right now. I might start funding a foundation over time. And instead of retiring, as we don't like that word, we repurpose into the foundation at a future point. And I have some people that are traveling around the world doing medical mission trips, and the foundation is paying for those things. They are drawing a salary because their full-time life at that point is philanthropy. And that's totally possible. It's the people that are like, I want to do this now, and then I want to draw income right away. That's not going to work. Yeah, and I probably could have... I probably could have asked my question better, but that was actually very similar to what I was thinking about. Let's say you exit a business or you're in the highest tax bracket now. You're funneling money. You want to be generous. And instead of maybe raising support, the foundation is able to subsidize money in the future, but you'd have to be in a much lower tax bracket. And you're saying that not only is that possible, but you have clients or you know people that are personally doing this. Exactly. And. And then past that, like you said, kids, grandkids, other people, like it's absolutely possible. But what tends to happen is people hear the marketing speak of, oh, start a foundation and pay your kids or pay yourself a salary or whatever. And while possible, what I start with is like, it's, it tends to be the people that want to be sophisticated that aren't that, that say these things. And I'm like, if you look at a family that really should start a foundation, they don't need the salary. Like it's kind of like a hard stop. Like they don't need it. Okay. So now if you're going to pay a salary, which is absolutely possible, it counts towards the 5%. This is where it gets really challenging because you could just never be charitable and just be paying family members. And this is why I think in a certain sense, foundations get a bad rap because they're ultimately never charitable. It is all based on what's reasonable compensation and reasonableness when it pertains to foundations is what other foundations of similar sides are doing. And this is where people get tripped up all the time because we have to do a compensation study. And what I've found is the majority of foundations that are less than three to $4 million of assets don't pay any salaries because even at $3 million, we're talking about $250,000, you know, to, to be charitable with. So if somebody says a 50 or $60,000 salary, that is about reasonable of paying somebody to be charitable with about $200,000. But if your 5% is $50,000 and you're paying a $30,000 salary and you're only giving out $20,000. That doesn't look so good. And so that's where on a percentage basis, like you look at the biggest foundations, billions of dollars of assets, their executives are getting paid million to $2 million annual salaries. And that's reasonable because other foundations of similar size are doing that. So if we ratchet that back down, like, yes, you can. But I always turn around and say, okay, yes, let's pay cousin Susie. What is she going to do? And would you be willing to pay a non-family member. that amount of money to do whatever it is you say she's going to do. If the answer is no, then we shouldn't be paying her. If the answer is yes, then absolutely by all means. And then we get into all the other stuff. You could have defined benefit plans, you could have health insurance, you can do all the things, but the foundation really needs to have sizable assets to support that. You just opened up a can of worms to all the things that you just mentioned, but you're saying it has to be reasonable. So if you're going to put $100,000 a year into a foundation, it's not reasonable for you to then generate a salary for your kids and get health insurance for the family and do a defined benefit plan. Like we're, even though a billion dollar foundation and, you know, your a hundred thousand dollar foundation are both foundations, both, you know, non, like non-exempt entities, they're, they're, it's not like they're all created equal. And it, and it comes down to being willing to defend it if someone is challenging it. And the likelihood is it's never going to be challenged, you know, just due to probability. But it's also kind of ironic because these are called private family foundations, but they're not very private. So it's like less of like a being challenged in from the IRS standpoint and more from a standpoint of like people just seeing what's going on. That's probably Dan. I know that this is not on the script, but that's probably like maybe one of the disadvantages I would imagine is like private family foundations are public. And so do people worry about that around like, especially with AI, I'm sure AI is already at a place where you can ask them certain questions and it can kind of spit out information. How do the families, like do people care about that? And if they do, like where, how does that break down? That's a good point. I actually have a video that says our private foundation is really private because the name private really comes from who controls it. And that's where it's saying is like private means. You or an individual or a family controls it, and we've talked about that before of whether a corporation starts the foundation or whom is doing it. But that's really where the privacy starts and stops is from who has control of it. It does need to file a 990 PF. You know, 990 is the general tax return for nonprofits and then PF for the private foundation. And almost all the rules about 990s are exceptions for the 990 PF. Meaning, if you go look at a public charity, if you look at who contributed to it, it'll say restricted. And people want that with the private foundation, but the private foundation, there's an exception saying that whoever contributes has to be on the tax return as long as it's over $5,000. dollars so In any given year. So that can be problematic. I've quite literally seen billionaires' personal addresses on their private foundation return because whomever is doing the return doesn't realize you don't have to put their address on. You have to put their name or whomever is on the board or officers and who made the contribution. but things like the address, phone number, things like that do not need to be on there. And, and that's where we can, like I said previously, we can get to a pretty close of anonymity, but ultimately. It's if, if privacy is really important to you, private foundation is not going to be a good solution because you do the private family foundation with the donor advised fund. Yeah. It's like, like you said, information is out there everywhere. So at a certain point, like if, especially if you're on a, on a podcast, you say, Hey, I'm a private family foundations, like, gee, I'll find it in two seconds. But the average person or somebody has a foundation, you'd have to know, like, you'd have to know the name of it. You, if they have a common name, it's just very unlikely that you'll be able to find them. Cause there'll be some other people that have the common name. And so it's a personal philosophy thing. If you have $200 million, you're probably driving around in a nice car and your kids are going to private school. And it's like you're probably it's pretty easy to tell that you have money. And so it's the people that and I actually empathize with this. It's those that are new to wealth. They don't want their relationships to change publicly if people find out that they have a lot of money. But it's a tough balance because ultimately they're trying to be generous. But we know with jealousy and just like human nature, they see like, whoa, where did all this come from? They just kind of like disregard the fact that the money is going to charity and it's to be generous. Yeah. You ready for my bonus question? I am. Foundations versus charities. I had someone recently on the show who had some very strong statements that he made. I'm not standing by any of them. he's like a big fan of like setting up public charities for people and kind of made it sound like it's the best thing in the world and all these things. And, um, and I don't know if in the video he bad mouthed private family foundations, but maybe he did. And you might be knowing the video I'm talking about, but I'm curious to hear your thoughts around utilizing charities as like, instead of doing a private family foundation, what was your thoughts on just setting up a public charity What are the pros to that? And then what are the cons to that? So disclaimer, I didn't see the video and I'm not an expert on public charities. So, you know, give me a little grace here. But from what I do know, the main differences come down to that control piece. So again, private foundation versus public charity, just by namesake, we're talking about two very different things. And the reason I personally don't like a public foundation or a public charity is it has to have an independent board. So what that means is they can't all be family members, whereas this person said that they could. But but I there are many people in the comments that that disagree with this individual's take. But this person doubled down after the fact that you could hire your whole family. We can we can cut and I will I will show exactly where it states that you do like that's a great have that take. I think that's the problem with the Internet now is you can say whatever you want and take it as gospel. but It's also like, yeah, you can operate that for a long time and nobody's going to say anything. So like that's that's the thing, too, is have they been audited? Have they survived an audit? Has like has that worked? You know, there's a lot of provisions where it's like, OK, yes, you I believe that you have to have an independent board. That's first. Then you have to qualify as a public charity. So like a private foundation, the legal definition is not a public charity. And so again, by private means... funded by private sources, whereas a public charity means you're funded by public sources. So one of the public support tests is that at least 33% of the funding needs to come from public sources. So if you're the only one funding it, you fail that test. You get reverted back to a private foundation. And there's other tests as well to confirm that you're a public charity. And you have to prove that you are a public charity in order to have that public charity status. But then again, this is the thing. With the public charities, you could go to LegalZoom, get a public charity set up. and you'd be fine. You would file the 1023EZ. You'd get your tax exemption. You'd feel like a rock star. And you'd file a 990N, which basically means it's called a postcard, less than $50,000 of assets or contributions. Whoever that guy is, he's right. You can absolutely do all those things, great tax deductions. But ultimately, you're kind of a sham entity at that point because you're not doing any charitable programming. You're not garnering public support. I would love, I'm gonna go look at this video now. And really, again, it just comes down to control. And even choosing a state is important in that regard because these things are bound by state law. They have... They have to follow the IRS federal provisions, but you have to follow state law. If you set up in California, oh my gosh, California or New York. And I think that was one of this person's loopholes. But my take for those of you that are wondering is I am very cautious of getting into something just to save money on taxes. And the way that this was pitched, I'll say, was a tax play. and both you and I have have just seen some bad things in our lovely past that it just make us say like, yeah, we don't want to do anything about what so-and-so did. Um, and, and usually coroners were cut because of trying to save a buck on tax. And so that would, that would be the reason why I, um, was just, I would be initially cautious as if anyone's telling you to do something that's you know, the government's giving you a, a actual benefit. And there's a lot of benefits to having a public charity, just for the record, like you even, even the potential student loan forgiveness kind of deal, like there's, there's benefits, but if the whole idea is you're just doing it to save money on tax, I don't think it's going to, it's, I don't think that's going to be a great, I think Time is going to be not on your side. What I like about videos like that is it does get you to start thinking differently. And very much like the Private Family Foundation and all, it just gets you to start thinking different. And hopefully those thinking differently could lead you to doors that you didn't even know were available. And so that's why I bring on people that I agree with, disagree with, like, don't like. Because I want to be a channel that gets people to think differently. But it's always interesting. I would love to get your take maybe on another video in the future. If you, if you get a chance to watch it on private family foundations versus charities. Yeah. And again, like I think you hit the nail on the head is like, if your goal is just save money on taxes, we've talked about this previously, there's probably other opportunities that are going to be better for you. And if you do want to be charitable, I would say the same thing though, is like, look at all your options. There's, there are tons of, of legitimate charitable options, whether it's a public charity, whether it's private foundation operating or non-operating. Whether it's a form of a charitable trust, I would avoid charitable LLCs, just throwing that out there. But there are other opportunities to be able to do things. Let's do a video on charitable LLCs because I think there's a lot of things on TikTok. I'm not sure about the YouTube landscape. There's been a lot of charitable LLC TikTok pitches. Yeah. And it'd be awesome to have you on to expose it. I'd love to. Okay. Dan. What else would you like to say as we land the plane for this video? My hope is that this was a comprehensive look, way more than I think what we initially intended of the common questions of the private foundation. And I really my goal in this is to provide real advice. It's like Jasmine DeLucci, the good old CPA EA JD. She's like trying to bring real tax advice to YouTube and create that content because really there's very little information about private foundations. And the majority of it that I see is incorrect, or it's a half truth. And so, you know, really my goal, and I think our goal with this is to provide that real information that you can be informed and be supported to make the best decision. Not here to say that any one thing is the best thing since sliced bread, but really the goal is that education piece so that you can make a better decision. Cool. And Dan will put your website, your contact info down below. If you're watching this and you want to learn more, reach That's Dan. And Dan, thank you for coming on the show. And we're actually going to be shooting another video coming soon around the big, beautiful bill and things to know as it relates to about that. Yeah, we thought this was going to be like a 25 minute video and jokes on us. But this ultimately was, I think, a very, very good conversation. And if someone's at all remotely thinking about getting a private family foundation, I think that this they're going to be better for this conversation. And so thank you. My pleasure.
.png)