25.2 – Creating your non-profit for taxes/perks/legacy
Why?
- You can increase your number of units in your home and get an exemption by being a non profit (zoning)
- Sale tax abatements
- Asset protection (think of board members who can’t sued)
- Family legacy structure
Notes:
501c3 – Anything that can improve people’s capability
-Ex: health, safety, welfare, aprots, housing, community improvement etc…
Where is the need (our government cannot do everything)?
- Online edu
- Health wellness
- Youth sports
- Organic and sustainable food
- Supply chain
- Opportunity in real estate
IRS Resources:
P4220 Applying for tax exempt status
P1771 Charitable Contributions (non profit requirements)
P526 Charitable Contributions (donor requirements)
IRM Part 7.20
Don’t do these:
Rent with a debt, a portion of the rental income may be UBI
Collection of Trust Ideas from Other Hui Members
Step by step transfer of money or put in the spendthrift clause
10 day vow of silence retreat requirement
-A financial education provision which requires your beneficiaries to complete a financial education course prior to receiving their distribution.. You can be specific and name the course/seminar they must attend.. Or you can leave it general and it will be up to your successor trustees to determine what satisfies this requirement.
-A drug provision that allows your successor trustee to require all or certain beneficiaries to complete a drug or alcohol screen prior to receiving their distribution.
-A separate property trust provision that requires your beneficiaries to create their own individual living trust prior to receiving their distribution to help keep their inheritance separate property from any marital assets.
-A drug provision that allows your successor trustee to require all or certain beneficiaries to complete a drug or alcohol screen prior to receiving their distribution.
-A separate property trust provision that requires your beneficiaries to create their own individual living trust prior to receiving their distribution to help keep their inheritance separate property from any marital assets.