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The World Foundation™ is a 501(c)(3) public charity.  We  create charitable accounts at The World Foundation (that we also call family foundations) that give financial support to a donor's favorite charities. We strive to make the entire process of philanthropy easy and rewarding for the donor, by providing simple procedures, ongoing education and a great amount of donor direction for annual charitable grants. Contributions made to your family foundation established at The World Foundation are deductible at the highest "public charity" level. As with any charitable donation, the gift or transfer is complete and non-refundable.

Eligible Donors
The World Foundation will accept contributions from individuals, companies, trusts, grant-making foundations, associations, and estates.

Donor Contributions
Contributions of cash, mutual fund shares, stocks, bonds, and other securities, including certain private and restricted stock, are eligible for contribution to a family foundation.  Gifts to The World Foundation™ for its Turnkey Family Foundation Program are not endowments, or endowment funds, even though they may have certain endowment-like traits.  These gifts likewise are not gifts into trust but rather they are gifts to The World Foundation.  The World Foundation represents that it will use its best efforts to always support and protect the integrity and viability of The World Foundation and its charitable programs, including its Turnkey Family Foundation Program. The minimum initial contribution to establish a standard family foundation at The World Foundation is only $5,000.   The minimum to create a charitable remainder trust is $100,000.  Subject to approval, multiple donors may pool their contributions into a single foundation at The WorldFoundation. The minimum amount for additional contributions to an already existing foundation is $1,000.

All original contributions for a new foundation must be accompanied by a completed Donor Application, which can be delivered to The World Foundation via mail or facsimile. Cash contributions must be denominated in U.S. dollars and delivered by check or wire. Checks should be delivered to: The World Foundation, 4518 North 32nd Street, Phoenix, AZ 85018.

Review and Approval
All contributions are subject to review and approval by the Directors. Contributions not accepted will be returned as soon as is practical. The World Foundation will provide written confirmation at the time of acceptance of any contribution. The confirmation will include the amount of the contribution of any mutual funds or publicly tradable stocks, bonds and other property. The World Foundation does not value private securities, real estate or limited partnership interests. Donors should obtain an independent appraisal prior to making such a contribution for tax deduction purposes.

All contributions, once accepted by the Directors, represent irrevocable, complete and unrestricted charitable gifts to The World Foundation  that are placed into family foundations under its Turnkey Family Foundation Program.   This is a Turnkey Family Foundation Program donation and not a gift to an endowment fund or trust.
 

Family Foundation Management

Accounts
The World Foundation will set up a component family foundation account, which will be used to maintain an internal accounting of donor contributions and grants to qualified charitable organizations. Your contribution may be allocated to one or more investment accounts or otherwise managed to achieve growth or income. Contributions to component family foundation accounts may be placed in common accounts. Funds placed in common accounts will maintain the appropriate family foundation accounting, reflecting contributions, the foundation's share of growth or income, and grant activity.

Investment Recommendations and Investment Advisors
A donor may make investment recommendations, but The American Foundation, pursuant to it's investment policies, will make all final investment selections or, under its sole and complete discretion, engage investment advisors or other professionals to assist with these tasks. Investment charges to foundations or trusts (typical money manager or investment advisory fees are 1%) may vary depending on the recommended investments and/or investment advisors selected.  

Securities
The World Foundation will determine in its sole discretion whether to hold or sell donated securities. If securities are sold, The World Foundation™ tries to obtain the most favorable sales price under the prevailing market conditions. For non-publicly traded securities, or other securities for which no readily liquid market exists, The World Foundation will exercise discretion as to the time and price of sales in an attempt to maximize the sales proceeds. Any costs incurred by The World Foundation necessary for the disposition of such securities (e.g., legal or appraisal fees) will be assessed to the family foundation account.

Under IRS rules and regulations, the fair market value of publicly traded securities is the mean of the high and low sales prices on the contribution date. Other rules apply if there were no sales on that date or if the securities are not publicly traded. In any event, the value of the deduction for contributed securities may differ from the actual sales price. The value of the contribution is determined on the date on which The World Foundation receives the asset. Therefore, the net proceeds from the sale of securities, and the corresponding value of the foundation, may differ from the charitable deduction attributable to the contribution.

Recommendations Of Grants
Donors have the right to recommend grant recipients. A "grant" is a gift from a foundation account, out of income or growth, to a recognized 501(c)(3), 509(a)(1) or 509(a)(2) public charity by way of the Grant Recommendation Form. The donor may also designate long term or ongoing recommended grants to named charities on the Donor Charitable Interest Worksheet. Any such recommendations are subject to review and approval by the Directors and/or The World Foundation staff as may be designated by the Directors. If the recommendations are approved, The World Foundation will then make the appropriate grants. If The World Foundation does not accept a recommendation, or if a recommended organization no longer qualifies as a 501(c)(3), 509(a)(1) or 509(a)(2) public charity at the time the grant is to be made, The World Foundation will make reasonable efforts to notify the donor and obtain recommendations for grants to alternative charitable organizations.

A Perpetual Charitable Account Which Can Grow
Family Foundations established at The World Foundation will be held as perpetual charitable accounts.  Our goal and objective is to preserve principal which is then managed for growth and/or income.  Part or all of the annual income or growth is distributed annually to qualified charities or charitable programs as may be recommended by the donor. Family foundations are expected to distribute 5% of the annual value of the family foundation each year. Annual interest or growth over 5% is added back onto principal allowing the foundation to grow.  The World Foundation will notify family members, before the end of each year, the calculated 5% amount available for making annual grants.

Charitable Advisor Election
During his or her lifetime, a donor may designate and authorize in writing another person or group of persons (called the "charitable advisor(s)" or "Director(s)") to recommend grants to charitable organizations. Once so authorized by a donor, those so designated shall possess the right to recommend grants at any time from the family foundation until written revocation of such right is actually received by The World Foundation from the donor.

Successor Charitable Advisor
Upon the donor's death, the successor charitable advisor(s) shall be assigned the rights and duties associated with the family foundation account at The World Foundation. If a family foundation is maintained jointly, upon the death of one donor, the remaining donor(s), unless otherwise specified, would succeed to the rights to recommend grants to charities and designate successors. Successor Charitable Advisors would be engaged only at the recommendation of the donor(s) or after the deaths of all donors of the family foundation unless otherwise specified in writing.

The successor must provide written notification and sufficient proof to the Trustees of the donor's death and will then succeed to all rights and duties of a donor to The World Foundation, including the ability to recommend subsequent grants. If the successor to this right is a minor, the Directors may require that the minor's legal guardian make recommendations for grants. Successor individuals may in turn assign successors in the event of the successor individual's death.

Grants to Public Charities
Grants can only be made to charitable organizations which are tax-exempt under Code Section 501(c)(3) and which are also public charities under Code Section 509(a) (1) or (2), or for qualifying charitable programs or projects as approved by the Directors of The World Foundation. Grants cannot be made to private foundations.

Grants to Foreign Charitable Organizations
The World Foundation will consider grants to foreign charitable organizations where we can properly monitor expenditure of those funds. The World Foundation may also make grants to charities that are qualified as Section 501(c)(3) public charities that in turn fund and exercise expenditure responsibility over foreign charitable activities.

Other Restrictions on Grants
Grants from The World Foundation may not be used in whole or in part for any pre-existing pledge or any private benefit (such as school tuition or scholarships that directly benefit a specific individual), dues, membership fees, benefit tickets, or goods bought at charitable auctions; nor may grants be used for lobbying, political contributions, or to support political campaign activities. The World Foundation will reject grant recommendations for improper purposes and will take remedial action if we discover that grants have been made for improper purposes, which action may include, but not be limited to, requiring a return of the grant from the charitable organization or requiring that donors make an additional non-deductible contribution.

Variance Power
If, at any time, the designated charities or charitable programs that the donor recommends for grants, become obsolete, go out of business, become suspect of wrongdoing (i.e. terrorist activities), are or become highly controversial, or otherwise significantly change in operation or mission, the Directors of The World Foundation may redirect the grant to other qualifying charities.  The Directors of The World Foundation will first look to the donor and/or the component foundation's Charitable Advisor for their recommendations and direction for any such needed substitution or modification of charity selection.  In policy and practice, we favor donor charitable involvement and direction. This Variance Power is intended to protect and benefit the donor, The World Foundation and society. The World Foundation believes that donor direction results in more effective philanthropy, which is part of our primary charitable mission.  Under this Variance Power, donors may lose their right of charitable direction only if their actions and grant making selections are intentionally harmful to society (such as making grants to support terrorist activities) or if they otherwise become contentious or adversarial towards The World Foundation. 

Minimum Amount for Grants
Each grant recommendation must be in $50 increments above $250 to any one charitable organization.

Maximum Number and Amount of Grants
The number of annual grants from a family foundation is limited only by the amount of income and growth of the foundation and the $250 per grant minimum. "Income or growth" is any increase in the value of a foundation over and above the initial and subsequent additional contributions.

Minimum Charitable Grant Activity
It is the policy of The World Foundation that all family foundations make annual grants of 5% of the value of the foundation account principal (determined on January 1st of each year). This policy may be modified only when there are clear and reasonable reasons for doing so. Requests for grants may be made at any time, and should be made no later than December 1st of each year to qualify for the current calendar year.

If this requirement is not met in a year, The World Foundation will contact donors who have not had grant activity in their family foundation of at least 5% of the foundation account's average net assets and provide them with the opportunity to recommend grants for the requisite amount. If such donors do not provide recommendations within 60 days after such notice, The World Foundation will make every effort to honor the wishes of the donor(s) by making the 5% annual grant in keeping with the respective donor's Charitable Interest Mission Statement, if provided. If no written instructions are available, The World Foundation will make the 5% annual grant based on past grants. If this is not possible, then The World Foundation will use its best judgment to make grants to worthwhile charitable organizations and programs.

Timing of Charitable Grant
The World Foundation generally reviews charitable grant recommendations daily, and, upon approval by the Directors, will seek to make the grant as soon as is possible. The World Foundation™, however, reserves the right to process grants every four to six weeks if necessary. In the event the family foundation account value fluctuates between the time of a donor's recommendation and when the grant actually is made, the donor will be contacted.

Grant Checks and Confirmations
Grants to charities are made by The World Foundation for Charitable Support accompanied by a letter recognizing the family foundation name and the name of the donor recommending the grant, unless anonymity is specifically requested. After your recommended grant is made, you will receive a written confirmation from The American Foundation.

Helping us Fulfill our Mission
All foundation accounts transfer 1% of their foundation account value (0.5% in the case of charitable trusts) annually to The World Foundation as a gift allocation. 

Anyone making a gift to a family foundation account at The World Foundation establishes a donor/charity relationship with The American Foundation. The relationship is not one of fees for services.

The donation allocation to The World Foundation first pays for the actual costs of program administration. Remaining money is used to develop and expand our charitable mission.

We encourage those who believe in our charitable mission to allocate more than the minimum percentage to The World Foundation to help achieve our charitable objectives. In any event, all family foundations transfer a minimum annual gift allocation to The World Foundation of an amount equal to 1% of the foundation value or 0.5% on all charitable trusts.

The Perpetual Nature of Family Foundations
All of our family foundations are intended to operate as perpetual charitable accounts under The World Foundation's Turnkey Family Foundation Program.  We endorse and promote the concept of preserving principal and try to manage all accounts to achieve growth. We feel the perpetual family foundation is a more effective and successful way to financially benefit charities and charitable programs. Giving to charity also becomes a more meaningful family endeavor.

Definition of Principal
Principal is the initial contribution plus any subsequent contributions. Any amounts of growth or income not distributed can be reclassified as principal.  Growth and income are not guaranteed and we cannot guarantee against losses in investments which might diminish a donor's contribution amount or principal.  However it is our hope and expectation that we will always be able to achieve above average income and/or growth.

Mission Integrity Policy

Donor Direction
If The World Foundation should change its declared and documented mission regarding its policy of allowing donors the ability to retain charitable direction (defined as the donor's ability to be involved in the recommendations of grants to charities), we will be happy to transfer their family foundation to another of our charities that does allow for that mission or to one or more of the "operating charities" to which the donor's family foundation has given grants.   Operating charities are defined as charities that have charitable operating programs such as youth organizations, educational institutions, health organizations, churches, schools, etc.   This "change of mission" policy is a donor friendly Turnkey Family Foundation Program feature. 

 Tax Considerations

Always Seek Assistance
The World Foundation strongly recommends that individuals seek assistance from a qualified legal, financial, tax or other professional to review and determine the tax and legal issues regarding donations to the Turnkey Family Foundation Program.

Charitable Deduction
Contributions made to a family foundation established with The World Foundation are deductible at the highest "public charity" level. You will be eligible to take an itemized deduction for a charitable contribution to a public charity on the date that the contribution is made to your family foundation, subject to the following general limitations. Your deduction will in part depend on the type of asset contributed to The American Foundation. You are encouraged to consult your legal or tax advisor to review your personal situation.

Cash
A cash contribution to your family foundation qualifies for a full income tax deduction (up to 50% of adjusted gross income).

Publicly Traded Securities
For publicly traded securities held for more than one year, your deduction is determined by the mean of the high and low prices reported on the date the contribution is made to your family foundation account. For mutual fund shares held for more than one year, your deduction is determined by the closing price on the date the contribution is made. For securities or mutual fund shares held for one year or less, the deduction is for the lesser of your cost basis or fair market value.

Securities That Are Not Publicly Traded
For securities that are not publicly traded which have been held for more than one year, the donor determines the fair market value in a reasonable manner on the date the contribution is made to the family foundation. To that end, the donor will be required to provide the IRS with a qualified appraisal for any contributed property for which the donor will claim a deduction of more than $5,000. For securities held for one year or less, the deduction is for the lesser of the cost basis or fair market value.

Other Deduction Limitations
Individual donors are eligible for an itemized deduction for cash contributions to your family foundation account in an amount up to 50% of their adjusted gross income in the tax year in which the contribution is made. Deductions for contributions of appreciated securities held for more than one year are limited to 30% of AGI. Any excess amount may be carried forward and deducted in the five-year period after the year of contribution. A donor's ability to deduct itemized deductions may be subject to certain other limitations. Please contact your tax advisor to determine tax deductibility limits.

Estate Planning and Probate
Contributions to your family foundation and any earnings related to them are not part of your taxable estate and are not subject to probate. Amounts contributed to your family foundation should not be included in your gift and estate tax  calculation.

Tax Treatment of The World Foundation's Income Grants Made to Charitable Organizations
Income that accrues to your family foundation is income to your family foundation. It is not income to you, the donor(s), and is not available as a charitable deduction. Income to The World Foundation will be reflected in the value of the family foundation account.

Tax Treatment of Grants Made to Charitable Organizations
When The World Foundation makes grants from family foundations to qualified charitable organizations, The World Foundation is distributing its own assets. Donor(s) will not be eligible to claim additional charitable deductions in the amount of these grants. The amount distributed may include appreciation in the value of the family foundation since the date of contribution.

Record Keeping and Foundation Reporting

The World Foundation will provide donors with financial reports and other information as required by applicable law.  The World Foundation will send the donor a funding letter and sign the "Donee Acknowledgment" at the bottom of IRS Form 8283 (when a gift requires an appraisal). The IRS requires that Form 8283 be completed and filed with an individual's federal income tax return for gifts of property valued at $500 or more, or publicly traded securities valued at $5,000 or more.

The World Foundation
The World Foundation is a 501(c)(3) public charity as described in Sections 501(c)(3), 509(a)(1) and 170(b)(1)(A)(vi) of the Internal Revenue Code of 1986, as amended. The procedures and policies covered in this Program Description apply to all gifts made to The World Foundation, The American Foundation, The American Foundation for Charitable Support, Inc., and all other affiliated foundations.

Changes to the Turnkey Family Foundation Program
All activities of The World Foundation and donor participation in its Turnkey Family Foundation Program, are subject to the terms and conditions of The World Foundation's By-laws ("By-laws") and the policies and procedures of this Turnkey Family Foundation Program Description ("Description") as published or found on its Internet Website, www.worldfoundation.org . The World Foundation Directors reserve the right to modify the Turnkey Family Foundation Program under its full and total discretion, at any time, subject only to its allegiance to the policy of encouraging and allowing donor participation in making recommendations for charitable grants from their corresponding family foundation accounts.    Any changes to the policies and procedures of the Turnkey Family Foundation Program will be found in the Turnkey Family Foundation Program as published on The World Foundation Website.  A printed copy of the latest version of the Turnkey Family Foundation Program can also be requested and mailed to donors or prospective donors by calling the Foundation offices.

Conflict of Terms
In the event of any inconsistency between the policies and procedures of this Plan Description and the By-laws, the terms of the By-laws will govern the rights and obligations of The World Foundation and donors.

Please Note
The information on this Site is not  legal or financial advice, nor is it intended to be.

Since each individual's circumstances will vary, The World Foundation strongly urges individuals to seek advice from qualified legal, financial, tax or other professionals when pursuing ideas presented on this Site. 
 

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