Become A Philanthropist
Find Happiness, Fulfillment, Personal Satisfaction, And A Lifetime Of Tax Savings By Incorporating Philanthropy Into Your Business And Your Life.
The Tax Code loves Philanthropists and offers an alternative environment for those who are willing to donate a piece of their wealth to empower society.
In 1889, Andrew Carnegie published the Gospel of Wealth in which he asserted that any funds that are in excess or surplus of one's personal needs should be treated as a trust fund that benefits society.
This concept was indoctrinated into the Tax Code in 1917, thanks to the relentless efforts of Senator Hollis, who persuaded Congress to pass the Charitable Tax Deduction (found in Schedule A today).
His argument was simple: A pre-tax deduction would incentivize more donations, and ultimately, up to 100% of the donations would reach the intended charity versus only 5, 10%, or 15% reaching the intended charity if it were to go through the government bureaucratic process - collected through taxes. When times get bad, this incentive would ensure people don't claim: charity starts at home, and continue to donate to charitable causes.
The government has been encouraging us to incorporate philanthropy in our business, life, and investment portfolio for over 100 years - incorporating philanthropy is not a tax loophole, but a true alternative system that exists for those who are willing to be "selfless" and empower society, either directly (by operating a public nonprofits) or indirectly (by operating a private foundation).
We are a diverse team of entrepreneurs, lawyers, CPAs, advisors, investors, and researchers, led by Business Lawyer, TEDx Speaker, and Tax Strategist, Sid Peddinti, who has helped thousands of entrepreneurs and investor become strategic philanthropists and impact investors over the past two decades.
To us, the Tax Code is broken into two distinct sections: One that regulates taxable "entities" (corporations, LLCs, individuals, trusts, and estates) and one that regulates tax-exempt "entities" (public and private nonprofits), rather than what is publicized in the marketplace: one for entrepreneurs and one for employees.
Donate time, talent, and treasure in a sustainable, strategic, and methodical manner...
Here Are Several Unique Advantages And Benefits That You Can Gain By Integrating Nonprofits And Foundations:
Estate planning tool: Reduce your estate size by donating to your nonprofit or foundation
Asset protection tool: Protect your corporate IP and assets by leveraging nonprofits and foundations
Risk Reduction tool: Reduce personal risk from multiple sides by donating assets (removed from estate)
Income tax reduction tool: Reduce income taxes every year for the rest of your life
Carryover deductions: Any excess deductions can be carried over for 5 years
Capital gains tax reduction tool: Reduce capital gains taxes and recaptured depreciation by donating the asset
Probate cost reduction tool: Reduce probate costs and court proceedings on donated assets
Capital sourcing tool: Secure grants and funding to expand your mission from a plethora of sources
Reputation and credibility Boost goodwill and trust by operating and advancing non-financial objectives
Contribution: Contribute time, talent, and treasure in diverse ways through your nonprofit and foundation
Overcome gift tax limits: Bypass the limitations of wills, revocable trusts, and irrevocable trusts by integrating nonprofits and foundations to your existing structures
There is a reason why the world's wealthiest families, especially in United States, hold, control, and manage their wealth in nonprofits and foundations!
It is a completely alternative business, legal, tax, and estate system that exists - one that every entrepreneur and investor ought to consider integrating into their business and operating model.
Incorporating philanthropy, especially in a strategic and tactical manner, does not cost you, your business, and your family anything!
As a matter of fact, in 99.99% of the cases we've been involved in - we're repurposing "otherwise taxable dollars and assets" into "impactful investments" conducted through your nonprofit for which you receive multiple layers of tax benefits.
We specialize in helping entrepreneurs and investors incorporate nonprofits and foundations as strategic business, estate, investment, and tax planning tools that can help them thrive on several fronts: personally, professionally, spiritually, psychologically, and financially.
Accomplish Personal And Professionals Goals Through Philanthropy
Here Are Some Unique Ways To Leverage Nonprofits And Foundations
Reduce taxes by donating cash or assets
Leveraging nonprofits and foundations can be one of the most robust and comprehensive estate and tax reduction tools available to you and your family that you can leverage every single year, for the rest of your life. Once your nonprofits are approved, you can:
Reduce taxable income (AGI) by 30-50% every year
Reduce capital gains taxes and recaptured depreciation
Reduce inheritance taxes and probate costs
Reduce federal estate and gift taxes and gift tax limits
Reduce the impact of step-up basis on irrevocable trusts
Lower corporate taxes by integrating a nonprofit arm
Purpose-driven entrepreneurship
Nonprofit organizations can generate profit while staying tax-exempt. Nonprofits are incorporations and need to governed and manage just like companies in order to be sustainable and successful. It is very similar to running a company:
Create jobs: Employ people and pay wages just like any for-profit business
Offer solutions: Offer products and services (e.g., universities, zoos, hospitals)
Invest in assets: Invest in diverse assets such as stocks, crypto, real estate, or startups
Pursue marketing: Spend on advertising, marketing, sales, and technology
Own assets: Hold corporate assets like intellectual property, marketing lists, and content
Monetize assets: Conduct research, publish insights, license goods or services
Expand like a business: Create chapters (like a franchise) or independent branches
Exit like a business: Sell assets, sell chapters, or even sell the nonprofit (EdX)
The term "nonprofit" refers to the mission, not the profit-and-loss statement.
If your purpose adheres to the requirements, rules, and regulations, you can operate a nonprofit organization as a stand-alone organization or as an extension to your business without any conflicts.
Charitable investing
Nonprofits and foundations can serve as powerful investment vehicles for long-term wealth preservation and transfer. Here are a few ways you and your family can grow your wealth, share your ideas, and invest in assets, generation-after-generation, through your nonprofits and foundations:
Charitable Investment Fund: Billionaires use nonprofits and foundations as multi-generational investment vehicles to hold, contribute, and pass-on assets
Outside the estate: Bypass capital gains, estate, and income taxes on appreciated assets
Use wealth for good: Preserve and grow assets while committing to donate a portion annually to charitable causes
Exempt from taxes: Public nonprofits are exempt from corporate and income taxes
Excise taxes: Private foundations pay a 1.39% flat tax on revenue from investments
Diverse assets: Private foundations are generally able to invest in a broad category of assets, including public stock, mutual funds, equities, alternative investments, crypto, startups and businesses, real estate, land, intellectual property and other asset categories
Sustainable giving: A foundation pays out 5% of the FMV of assets in the form of donations and grants every year, creating consistency in your donation strategy
Entities like The Gates, Buffett, and Zuckerberg Foundations exemplify how these structures allow for wealth control and growth, all while fulfilling charitable missions.
Philanthropic estate planning™
Nonprofits and private foundations are powerful estate planning tools for high-net-worth individuals and families. They are an extremely robust tool to circumvent several layers of unexpected taxes and legal costs that are related to the transfer of assets from one generation to the other:
Unlimited donation exception: Unlike wills or trusts that are subject to the gift tax exclusion limits, donations do not have a limit (annual or lifetime)
Paul Newman Example: Donate million-dollar enterprises to pursue charitable goals (owned and operated under a private foundation)
No step-up basis like trusts: Irrevocable trusts do not have step-up basis any longer after the new IRS ruling in 2023 - nonprofits and foundations are not impacted by that ruling
No probate proceedings: Assets in nonprofits and foundations do not have to go through probate and do not require court intervention (99.9% of the time)
Protect against spendthrifts: Foundations are one of the most powerful mechanisms to protect wealth against spendthrift beneficiaries and heirs (or even ex-spouses/partners)
Integrates with wills and trusts: Preserve your legacy and values by linking assets to long-term charitable purposes
By incorporating these entities, you not only reduce tax burdens but also ensure your wealth supports causes that matter to you, securing your impact for generations.
Build a legacy that transcends financial success
Nonprofits and foundations offer an extraordinary way to fuse profit with purpose, a strategy embraced by visionaries like Rockefeller, Carnegie, and Gates. Here's how they masterfully blend financial power with lasting impact:
Generate sustainable profits while advancing world-changing missions, just like the Rockefeller Foundation or Carnegie’s libraries
Invest in diverse assets—from real estate to stocks, startups, and beyond—growing wealth while funding charitable endeavors, as seen in Gates Foundation's investment strategies
Leverage tax-exempt status to bypass capital gains, estate, and income taxes, channeling more resources into transformative projects
Build a lasting legacy by reinvesting profits into causes that outlive you, ensuring generational impact, much like Carnegie's support for education and Rockefeller’s influence on public health
By fusing profit and purpose, you follow in the footsteps of history’s greatest philanthropists, using your wealth to drive both financial success and unparalleled social change.
Learn How To Leverage The Power Of Nonprofits
TEDx Talk: Strategic Philanthropy Through Public Nonprofits
Strategic Philanthropy Through Private Foundations
Nonprofits And Foundations In A Nutshell™
Leveraging the true power of the 501(c)(3) section of the tax code and explore an alternative structures that are exempt from taxes: the world of tax-exempt entities
Active model
Operate a public nonprofit like a business:
Offer good and services like a business (certain limits exist)
Secure grants from all sorts of sources
Family members can be on the board by need one independent party
Control decisions and investments
Run programs and conduct activities
Get compensation for your work
Integrate with a for-profit company or even wills and trusts
Passive model
Operates a private foundation like an investment fund:
Invests in a diverse range of assets
Funded by a family or a corporation
Multiple family members can donate
Assets are outside your estate
Control decisions as a board member
Kids and grandkids take board seats
Get compensated for your work
Compensate others for their work
Integrate with a for-profit company or even wills and trusts
Your Wildcard
Think of your nonprofit entities as the ultimate "wildcard" that you and your family have at your disposal:
Reduce 30-50% of taxable income every single
Break the 1031-exchange cycle and beat capital gains and recaptured depreciation on exits
Control the donated funds and reinvest into diverse assets, tax-free
Convert "taxable dollars" into "donations and grants"
Preserve wealth for generations to come and prevent heirs or even ex-spouses from diluting your wealth
Find Happiness, Fulfillment, And Joy And A LOT Of Tax Savings Through Philanthropy
Become The Leader In Your Family, In Your Community, And In Your Industry!
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