USA – FLORIDA Law and Practice Contributed by: Jennifer Jordan McCall, Drew Reitz and Christine Tsai, Pillsbury Winthrop Shaw Pittman LLP
is 30% of AGI. The limit on noncash contributions to a private foundation is 20% of AGI. Individuals con - tributing to private foundations may generally qualify for a more restricted deduction, as private foundations are often controlled by a single family or a small group of donors. 10.2 Common Charitable Structures Common charitable structures generally include: 1) 501 (c)(3) public charities; and 2) private non-oper - ating foundations that are typically designed for the purpose of financially supporting other public charities and are controlled by a small family or a small group of donors. 501 (c)(3) public charities can include charities which derive a significant proportion of their revenue from the general public and certain “per se” entities (such as churches, educational organisations, and hospitals) which meet specific requirements. Private non-operating foundations allow individuals more control, as they are often controlled by a sin - gle family or a small group of donors, whereas public charities typically are not. Donations to private non- operating foundations also allow individual donors to take a deduction up to a certain percentage of the individual’s adjusted gross income. The percentage depends on the asset being donated, but is gener - ally less than the percentage allowed for public chari - ties (as mentioned in 10.1 Charitable Giving ). Private charities are also subject to annual minimum distribu - tion requirements, while public charities are not. More - over, private non-operating foundations are subject
to additional regulations and penalties, such as the excess business holding rule (for holding more than 20% of voting stock in a business). Public charities, while they are also subject to various rules and penal - ties, are typically not subject to such extra regulations. Private non-operating foundations are also subject to further prohibitions, greater scrutiny and strict regula - tions against self-dealing transactions and jeopardis - ing investments. These rules are often complex and fact-specific, and usually require ongoing compliance and review to ensure that the foundation does not run afoul of them, with penalties for shortcomings in com - pliance. These entities file tax returns, file reports with the State Attorney General’s office (charities bureau) and register in each state in which they solicit from potential donors. For charitable organisations soliciting in Florida, addi - tional Florida compliance is necessary. Florida recently passed Florida SB 700, which prohibits charities from soliciting or accept contributions or anything of value from certain “foreign sources of concern”. According to the statute, an attestation statement certifying that a charitable organisation does not solicit or accept contributions from foreign sources of concern, among other statements, is needed in order for the organisa - tion to be included in Florida’s Honest Services Reg - istry. Additionally, see the discussion of CLTs and CRTs in 2.6 Transfer of Assets: Vehicle and Planning Mecha- nisms .
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