A Supporting Organization is an individual foundation organized under Section 509(a)(3) of the IRS Code that is operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more specified public charities.
Supporting organizations are complex legal entities, and in simplest terms can be described as a "hybrid" of a donor-advised fund (see Give to or Through a Community Foundation) and a private foundation (see Create a Private Foundation). There are three basic types of supporting organizations, and each option reserves a varying degree of the supporting organization’s governance for the trustees of the beneficiary charity.
Because of the complex nature of supporting organizations, it is important that you consult a professional advisor for further information and guidance.
The Minnesota Council on Foundations is available for one-on-one consultations. Contact the Council for more information.