You can set up your own charitable foundation or trust if you plan to donate at least 5 L per year or 25 L total and your goals meet one of the following: donate now but decide beneficiaries later, donate land/property/securities, create an implementing organization, or raise money from the public. Setting up your own foundation allows you to receive tax benefits, have flexibility in donations, channel donation requests formally, invest assets tax-free, fund beneficiaries directly, fill service gaps, and leverage your network to raise more funds. You should completely think through your goals and structure before setting up a foundation to ensure it is the best fit.

1. Should I setup my own Foundation or Trust?

2. You can setup your own charitable entity if you plan to donate at least 5 L p.a. or 25 L corpusand answer YES to any of the statements belowDonate now, Decide beneficiaries laterDonate land, property or securitiesCreate an implementing/operating organizationRaise money from public

3. A. Donate Now, Decide beneficiaries later Tata Trusts, a sustained tradition of bequeathing personal wealth to their trusts

4. Started as a way of promoting higher education and research, has grown to support health; education; and livelihoods

5. Individual scholarships/medical emergency grants – all channeled through the Trust

6. Leave behind a legacy of giving for your children

7. Get a tax break as soon as you make the donation in your current earning year and/or when you need it the most

8. Have flexibility in the timing of your donations

9. Get clarity on your philanthropic objectives as you structure your giving

10. Ability to channel all donation requests in a formal and structured mannerB. Donate land, property, or securitiesDonations made in-kind to a charity are not eligible for tax deduction

11. Small local charities not competent to receive in-kind donations

12. Sell and donate cash – decrease in donation amount by capital gains tax

13. Sell and donate securities to your own trust - VineetNayarsold a million shares in HCL Technologies worth Rs 43 crore, in a bid to raise money for his charity SAMPARK

14. Realize as needed as in case of AzimPremjiwith a Private Irrevocable Trust - future distributions can be made at any time

15. Invest property as an asset of the trust, income will continue to grow tax-freeC. Create an implementing/operating agencyWork to fund beneficiaries directly at grassroots

16. Have an innovative model that no other organization is involved in

17. Fill a service gap or build implementation capacity in existing organizations

18. Setup a scholarship fund for the children of your maid, office clerks etc. and get tax exemption for the same

19. Hire staff to manage your giving program

20. AzimPremji Foundation, started as a grant making foundation evolving into an implementation agency

21. Arghyam Foundation, promoting strategic efforts that enhance equity in access to water to the marginalised

22. Wadhwani Foundation, promoting entrepreneurship & targeted job creationD. Raise funds from PublicDistribute donations over a wide variety of causes

23. Higher Personal Trust Factor

24. Leverage your network to channel more money into the sector/cause

25. KC Mahindra Education Trust raises funds to supportits Nanhi Kali programme

26. Bharti Foundation raises money for education of under-privilegedA foundation may be right for you if….

27. Have you completely thought it through?

28. I do want to setup a foundation, what is the legal structure that would suit me the most?