Setting Up A Trust Fund To Make Charitable Grants

Due to tax legislation introduced through congress in the early 1990's. More and more people are happily finding themselves enjoying the pleasure and the tax benefits of donating to charity. Some opt for the passive approach and prefer that others will choose which charity or charities will receive the benefits of the unselfish deeds. Others prefer to choose one or two causes that are dear to them, and to channel their donations specifically in their direction.

However there are a few charitable trusts that have been established over the years, that prefer top donate at least some the funds at their disposable to causes of even cases that can be one offs, such as personal tragedy cases or to come to the aid of people who have been struck by natural disasters such as Hurricane Katrina in New Orleans or the Tsunami that struck in the Pacific ocean in December 2004.

For the private individual who decides to donate some of their income to help victims of natural disasters that occur, the likelihood that they will enjoy the same tax advantages receivable by establishing an annuity fund is considerably less. However in these instances the suffering and loss of the individual is portrayed graphically on the television screen and in the press. In these cases, human emotions come into play, and it is natural to want to alleviate the suffering of these people by making an immediate donation.

One of the most famous examples of large charitable trusts established to help causes in need is the Paul Newman Charitable Trust. For the very few of you who do not know, Paul Newman is a very famous film actor and director. Apart from starring and directing films from more than 50 years, Paul had a hobby of producing all kinds of exotic salad dressings and condiments. He established a company that was supposed to cover the costs of printing the labels for his products. To his great surprise and delight, the company became a huge success, and till now has earned over $175 million in profits. All of these profits have been donated by Paul Newman to charities of his choice. Among the most famous or the children's camps run for children who are terminally ill with cancer.

However the Paul Newman Foundation has been involved in awarding charitable grants foe worthy causes since its inception. The involvement in awarding individual grants is very much a hands on experience. It involves investigating each case individually. To determine the authenticity and urgency of the grant request as well the sums of goods to be donated.

Many people who have the time and resources available enjoy this form of charitable giving, as they have the opportunity to see and experience the direct effect of their kindness.