The charitable corporation: A trust in disguise?


The charitable trust can have certain practical advantages over the charitable corporation, at least in some quarters and under certain circumstances. Operational simplicity and low-cost maintenance are some of the pluses. The charitable trust can be more respectful of donor intent, as well. Neither vehicle has shareholders; each exists to further one or more charitable purposes. Professor Austin Wakeman Scott, while acknowledging some technical differences between the charitable trust and the charitable corporation, on balance found them more similar than dissimilar. Charles E. Rounds, Jr. elaborates in §9.8.1 of Loring and Rounds: A Trustee’s Handbook (2014). The section is reprinted bellow in its entirety.

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Topics:  Business Formation, Charitable Donations, Charitable Trusts, Choice of Entity, Institutional Investment, Private Foundations

Published In: Business Organization Updates, Family Law Updates, Nonprofits Updates, Tax Updates, Wills, Trusts, & Estate Planning Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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Charles E. Rounds, Jr.
Suffolk University Law School

Professor of Law, Suffolk University Law School. Tenure granted: 1990. Author: Loring and... View Profile »

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