These organizations operate exclusively for charitable purposes and collect, retain and spend funds solely for the benefit of the public. Public benefit corporations vary widely in their size and purpose. There must be at least three board members to properly constitute a public benefit corporation. Regardless of the size of the board, most board members should not be financially interested in the organization.
This means that most board members cannot be employees of the organization or have family members working for it. Examples of charitable corporations include volunteer fire departments, social service organizations, colleges and universities, hospitals, museums, and youth sports leagues. If your organization is a non-profit arts organization, a land trust, or a library, learn more about membership discounts through our associations. The University of Maine Foundation has professional grant officers ready to work with you and your advisors.
The Maine Attorney General has a guide for members of the board of directors of charitable corporations that describes their functions. Because the interests of the organization as a whole are paramount, Maine law requires that no more than 49 percent of the people on the board of directors may have financial interests. With an endowment annuity, you make a gift in cash, negotiable securities, or other assets and the University of Maine Foundation pays you a fixed amount for life. Because the assets transferred to the trust will be used for charitable purposes in the future, gift, inheritance and income tax deductions equal to the value of the donated portion of the trust in the year of the gift are allowed.
They are entitled to a charitable income tax deduction in the year of the gift and are assured that the amounts deposited in the trust will be removed from their estate for wealth tax purposes. The remaining trust assets will then be allocated to the Foundation to help the University of Maine (and possibly other charities) and will be used in the manner you have designated. The University of Maine Foundation, which acts as an independent organization, works in collaboration with all entities to encourage philanthropic support for the University of Maine and other charitable organizations while fulfilling the donor's wishes in perpetuity. Including the University of Maine or its affiliated organizations in your estate plans entitles you to become a member of Charles F.
Finally, on the subject of conflict of interest, Maine law prohibits charitable corporations from lending loans to their directors or officers. The University of Maine Foundation has a professional plan so that officers are ready to work with you and your advisors. The board of directors is responsible for ensuring that charitable funds are used only to promote the corporate mission.
Leave a Comment