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Thread: Help setting up a foundation

  1. #1
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    Help setting up a foundation

    Hi folks,

    I am not sure where to post this so under finances seemed as appropriate as anywhere.

    I am hitting a brick wall at every step and thought maybe someone here could help me.

    Since being diagnosed with MND, I decided that I wanted to setup some sort of foundation to raise awareness and funds for mnda and to leave a legacy that I made a difference in this world and my 2 year old has something to look back on that her daddy did something positive.

    I have some great friends who will help me do as much as possible.

    I am self employed and don't have the benefit of a work sickness plan or pension fund, if i dont work, i dont get paid, quite a simple concept.

    My friends and I decided that since I have never drawn from the tax purse, i wouldn't start now and our foundation would raise awareness of this condition and 50% of funds raised would go directly to MNDA to support research and provide their other services and support. The other 50% would be managed by my trustees to provide assistance to us as a family and to provide an education fund for my little girl as I would have done this but for the fact I contracted this disease.

    It seems that the accountants and lawyers think this is too difficult and has never been done so presents a whole raft of obstacles that at the moment seem to challenge them. They are concerned about tax issues and don't seem to agree on what vehicle is the most appropriate.

    I know that we can setup a fighting fund through MNDA and I am happy to do this but we have absolutely no say in how the funds can be used and have no control over directing this to research or provide support to an individual.

    I don't want this to sound selfish, I want to do all I can to raise awareness and money for research and support but at the same time, I need to make sure that my family are also looked after when I am no longer able to fulfill that role.

    Again, I am not doing this purely for selfish reasons and don't want to upset or offend anyone, I want to make a difference and I will get this up and running it is just a matter of getting the right advice.

    Warmest regards

    Ian

    I have looked at charity status but that is a time consuming process and I am concerned that time is not my biggest commodity these days.

    If anyone has any suggestions or some professional expertise in achieving this goal, I would really appreciate hearing from you.

    Warmest regards

    Ian

  2. #2
    Forum Member john's Avatar
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    Hi Ian,

    I am a retired accountant and although it is some time ago that I last formed one I have been involved in setting up a charity or 2 over the years. The Charity Commissioners are quite approachable people and will give general advice. It doesn't take long to get one up and running., the charity status can follow as long as you have got an indication from the commissioners that what you are planning is acceptable to them.

    I would suggest that rather than say half of the income to you that you are just included in the type of beneficiary the charity can give money to. If your intended trustees are people you know well you can explain to them the detail of your plans but may have to trust them to carry out your wishes without the obligation being specific in the charities trust deed. The other option would be a discretionary trust naming you and your daughter as potential beneficiaries. The downside of this is that all the trusts income is taxed at 50% but beneficiaries of the trust (the people to whom the trust distributes its income ) can recover excess tax when they submit their tax returns. The distributions from the trust would be taxed as income but this would not be the case in respect of a charity.

    Talk to the charity commissioners first about your plans and see if they can suggest a way forward.

    john

  3. #3
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    John

    Thanks very much for the info.

    I have been doing some reading overnight and the charities commission comes up regularly.

    I will give them a call and see if they can help me with this.

    I want to get cracking on with it as I have friends eager to raise awareness and funds.

    Initially we were going to raise funds and distribute them al on a grant basis but then decided that that is with MNDA does to some degree and didn't want to reinvent the wheel.

    You've given me some food for thought anyway.

    Warmest regards
    Ian

  4. #4
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    Hi Ian

    I wondered if you managed to get anywhere with setting up a trust or foundation? We would like to do something similar for my brother, however I've been looking at costs setting this up (approx 1500!) and it just doesn't seem to be straight forward!!

    Any advice would be very much appreciated!

    Warm regards

    Nerys

  5. #5
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    South Wales
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    Hi Ian

    I wondered if you managed to get anywhere with setting up a trust or foundation? We would like to do something similar for my brother, however I've been looking at costs setting this up (approx 1500!) and it just doesn't seem to be straight forward!!

    Any advice would be very much appreciated!

    Warm regards

    Nerys

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