Private Foundation Conversion

Considering Closing Your Private Foundation? Here’s a Simpler Way to Keep Giving

Sometimes, private foundations face the decision to wind down operations. Whether it’s due to increasing administrative burdens, changing priorities, or a desire for greater community impact, the Chillicothe-Ross Community Foundation offers a smart alternative: conversion to a fund within the Community Foundation.

Why Convert Your Private Foundation to a Fund at the Community Foundation?

• Keep Your Charitable Vision Alive: Your foundation’s assets will continue to support the causes you care about, right here in Ross County, as a permanent named fund.

• Simplified Administration: Say goodbye to the headaches of managing a private foundation. We handle the day-to-day administration, investment management, and compliance requirements.

• Eliminate Excise Taxes and Payout Requirements: As a fund within the Chillicothe-Ross Community Foundation, you’re no longer subject to the excise taxes and mandatory payout requirements of a private foundation.

• Enhanced Tax Benefits for Donors: Benefit from the Chillicothe-Ross Community Foundation’s public charity status, which offers greater tax advantages for future donors to your fund.

• No Separate Audit Required: Your fund is included in Chillicothe-Ross Community Foundation’s annual audit, saving you time and expense.

• Leverage our Local Expertise: Tap into our deep understanding of Ross County’s needs and our strong relationships with local nonprofits.

How Does it Work?

Under Section 507 of the Internal Revenue Code, private foundations can terminate by distributing their assets to a qualified public charity like the Chillicothe-Ross Community Foundation. To qualify:

1. Your foundation must distribute all of its net assets to one or more tax-exempt organizations.
2. Each organization must have been in existence for at least five continuous years.

The Chillicothe-Ross Community Foundation meets both of these requirements. We’ve been serving Ross County for over 25 years and are a recognized 501(c)(3) public charity.

Let’s Talk

If you’re considering terminating your private foundation, we invite you to explore the benefits of converting to a fund within the Chillicothe-Ross Community Foundation. It’s a way to ensure your charitable legacy continues to thrive for generations to come. Contact us today to learn more.