Helped Clients Recover Over $25 Billion. Since 1979.
Helped Clients Recover Over $25 Billion. Since 1979.
A philanthropy LLC is an ordinary limited liability company that a donor uses for giving. It can make grants, invest in mission-driven companies, and fund advocacy, all under the donor’s control. The Schenk Law Firm forms the LLC and drafts the operating agreement that sets how it runs.
Forming the LLC
We form the company, choose where to organize it, and prepare its state filings.
Operating Agreement
We draft the operating agreement that sets who manages the LLC, how the LLC approves each grant or investment, and who takes over when the founder steps back.
Impact Investments
When the LLC invests in a company or fund, we review the investment documents the same way we would for any investor.
Grant Agreements
We prepare grant agreements that set how a recipient may use the money and what it reports back.
Pairing With a Foundation or Fund
Many donors use an LLC alongside a foundation or a donor-advised fund. We set up the structure so each one does the job it’s suited for.
Do I get a tax deduction when I fund the LLC?
No. Putting money into the LLC isn’t a charitable gift. A deduction may come later, when the LLC gives to a charity, and your tax counsel can explain how that works.
Why use an LLC instead of a foundation?
An LLC isn’t bound by a foundation’s payout rule or its limits on investments and political activity, and it can make for-profit investments. It doesn’t get a foundation’s tax exemption.
Can a philanthropy LLC fund advocacy or political work?
An LLC isn’t limited the way a charity is, so it can support advocacy and political causes. Campaign finance and lobbying laws still apply.
Is a philanthropy LLC private?
An LLC doesn’t file a public return the way a foundation does. Its state filings may still list its managers or agent, depending on where it’s formed.
Can family members manage it?
Yes. The operating agreement can name family members as managers and set how control passes over time.
Experience
David Lizerbram has practiced business law for more than two decades. Benjamin Schenk founded and runs a commercial real estate investment and asset management firm.
LLC Experience
We form LLCs and draft operating agreements throughout our business practice, and a philanthropy LLC uses the same tools.
One Coordinator for Your Advisors
We act as the coordinator for your plan. We work with your tax attorney, estate attorney, and CPA, or we find the right ones for you and coordinate their work with ours.
The Schenk Law Firm is based in North Park, San Diego. We set up philanthropy LLCs for donors throughout California.
Our full philanthropy and nonprofit practice.
Private Foundation vs. Donor-Advised Fund
How the two main giving vehicles compare.
Forming the foundation, its bylaws, and its board.
Shareholder, Member & Partnership Agreements
The written rules between co-owners.
Entity Formation & Structuring
Choosing and forming the right company and setting up its ownership.
Contract Drafting & Negotiation
Drafting, reviewing, and negotiating the agreements an organization runs on.
A philanthropy LLC gives you room to give, invest, and advocate from one place. We can form the company and draft the agreement that governs it.
Contact us today to discuss a philanthropy LLC.
Request a ConsultationIt’s a regular limited liability company that a donor uses to fund charities, invest in mission-driven companies, and support causes. It isn’t a charity and isn’t tax-exempt.
In most setups, the LLC’s income and losses pass through to its owners, who report them on their own returns. Your tax counsel can confirm how it applies to you.
Yes. Some donors use the LLC to hold assets and make charitable gifts to a fund or foundation when it makes sense.
Many donors form it in their home state. Some form it elsewhere for privacy or flexibility, which can add a California registration if the LLC does business here.