Giving on your terms, with your family in control.
A charitable LLC is an ordinary limited liability company that you dedicate to charitable goals. It can make grants, invest for impact, back causes and hold a business, all under your family's control.
The trade-off is that the LLC itself isn't a charity, so the tax rules work differently. We help you decide whether it's the right vehicle, then build it properly.
What it can do.
Because it's an LLC and not a tax-exempt organization, a charitable LLC isn't bound by the rules that limit private foundations. That flexibility is the reason families choose it.
- Make grants to charities, and also invest in mission-driven companies
- Support advocacy and causes a foundation couldn't fund
- Hold operating businesses and illiquid assets
- Keep decisions with the family, through the operating agreement
- No required annual payout and no public tax return of its own
The tax picture, honestly.
Putting assets into a charitable LLC is generally not a charitable deduction, because the LLC isn't a charity. The deduction typically comes later, when the LLC donates to a qualifying charity, and income from its investments flows through to the owners.
For many families that's an acceptable price for control and flexibility. For others, a foundation or a donor-advised fund, or a combination, fits better. We model the alternatives before you commit.
Charitable LLC, private foundation or donor-advised fund.
A private foundation gives an upfront deduction and lasting family involvement, but requires a minimum annual payout, pays an excise tax on investment income and files a public return. A donor-advised fund gives an immediate deduction and very little administration, but the sponsor has final say over grants.
A charitable LLC trades the upfront deduction for control and privacy. The right answer depends on what you want to fund and how involved the family wants to be.
What we handle.
We design the structure, draft the governance documents and coordinate funding and ongoing administration.
- Single- or multi-member structure matched to your goals
- Operating agreement with charitable-purpose provisions and manager succession
- Funding strategy and appraisals for closely held or illiquid assets
- Coordination with foundations or donor-advised funds you already have
Charitable LLCs: common questions
What is a charitable LLC?
A limited liability company formed to carry out its owners' charitable goals. It isn't a tax-exempt organization, which gives it more flexibility than a private foundation, along with different tax treatment.
Do I get a tax deduction when I fund a charitable LLC?
Generally not when you put assets in, because the LLC isn't a charity. Deductions typically arise when the LLC makes gifts to qualifying charitable organizations.
Is a charitable LLC better than a private foundation?
Neither is better in general. A foundation offers upfront deductions with more rules and public disclosure. A charitable LLC offers control, privacy and flexibility without the upfront deduction. Many families use more than one structure.
Planning how your family gives?
Tell us what you want to support and what you'd put into it. We'll review it and get back to you.