If you “inherit” a Charitable Foundation from your parents, is that just as good as inheriting the cash? Can you do anything through the Foundation?

Question

Many people seem to believe that “inheriting” e.g. The Gates Foundation is just as profitable as inheriting tens of billions in cash. My gut tells me that charitable law must be more complicated than that. What’s the truth?

In: 377

Answer 1

While it’s not literally as good as cash, a charitable foundation is great for “rich people hobbies”.

You can draw a healthy salary from the administrative budget, use it as an avenue or direct subject of your charitable giving and direct the foundation to focus their resources to your philanthropic interests or subjects. While it’s a bit unfair to reduce these missions as “hobbies”, if you wanted to go see the world and make a difference out there, the foundation will ensure more of your money goes towards your projects and less towards taxes.