The NxGen International Charity

Overview Summary

The NxGen International Charity is a captive, or private charity that provides
is an effective and beneficial solution for HNW individuals, family offices, private foundations, public charities or business owners seeking impact investments, social ventures; or, personal humanitarian dreams.

Features & Benefits Of The International Charity

The International Charity properly structured, correctly 'domiciled', and managed optimizes the following features and benefits:

• Laws – With minimal laws, rules and regulations, the international charity is much easier to efficiently manage, and more effectively accomplishes the missions desired by the charity founders.

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• Reporting – More significant is the absence of government reporting requirements for the international charity domiciled in charity-friendly countries. 

• Accountability and Compliance – The international charity can enjoy an operational environment with minimal accountability and compliance requirements. 
  

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• Respect and Confidence – On the international stage of humanitarian and environmental causes, it is important that various governments have respect and confidence in the proposals and participation offered by various charities. International charities tend to be received much more easily without the threat of the charity taking over and dominating in the mission accomplishment. 

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• Objectives and Goals – Behind the scenes, it is very easy for an international charity to be part of the overall financial objectives and goals; blending personal, business and charity elements together with estate planning, asset protection, and tax planning as the objectives. 

Success-Requirement Factors

To achieve optimum results The International Charity requires an astute knowledge of precisely:

1) What domicile is best
2) How to properly structure the International Charity
​3) A steady hand in managing the day to day operations 

"Exactly the same considerations sophisticated investors require of any business model, technology, or investment strategy"

Traditional Philanthropy

Charity, service and compassion are basic to human nature. "Within each of us there is a driving force, an inner desire to be charitable and sharing. Public policy, statute or law is not rewas not giving are ; and, we also have a desire abd sovereign right for a hands-on influence over the charitable use of our personal resources"  There is no need or requirement for public policy, statute, civil or religious authority to legislate or mandate what is already inherent in human nature. 

The primary motivation and purpose of any private charity is really the accomplishment of the charitable passion of an individual, family or business. There are no good reasons even suggesting a wealthy individual should be prohibited from effectively managing a private charity. Rather, for the most part wealthy individuals should be given the reigns of a private charity, because they have the resources to actually get the job done. 

"In the spirit of America's early philanthropic foundations...NxGen Philanthropy is about the lifestyle decisions that blend your personal estate and business resources into a charitable platform for more choice and control in achieving your goals of wealth creation and lasting legacy"

The International Charity is the optimum charitable platform for ​those with substantial endowments and wanting more choice and control. To appreciate and understand the power and uniqueness of The International Charity it's important to differentiate or distinguish it from the typical and most common structures here in the United States.

United States Based Structures

• United States “Private Foundation” – The United States Tax Reform Act of 1969 brought into existence the “Private Foundation” governed by U.S. Code, Title 26, Subtitle D, Chapter 42 articulating serious prohibitions and taxes on the management and operations with this new type of charity.  Typically, the mistaken belief on the part of professional advisors is that the code was designed to: define a private charity with the goal of providing an opportunity for individuals who want to have their own charity.

Unknowingly, most clients of the professional advisor are informed that there is a clear and effective charity structure, the “Private Foundation”, specifically crafted for the client to use as an effective private charity.

Unfortunately, and as a practical matter, the US Private Foundation can be an 'open door' for licensed professionals to generate fee income for providing legal services to the private foundation in making sure that the private foundation is in compliance with Chapter 42 prohibitions and taxes. Clearly the US “Private Foundation” is not the solution for the wise HNW individual, family office, or business owner. 

• United States “Public Charity” – In the United States for a charity to NOT be a private foundation it must clearly demonstrate over a number of years that it qualifies as a “Public Charity”. Required is that the charity seeking tax-exemption must show both a public support and benefit, generally thought of as having at least 100 donors and over 100 beneficiaries each year. For the HNW individual, family office or business owner seeking optimum flexibility and control in 'giving', the United States “Public Charity” is not ideal. 

Tax Considerations

It is important to make sure that all transfers of wealth into any charity are properly structured to minimize or eliminate tax liability: 

• IRS Forms 706 & 709 – Any United States tax payer will need to pay careful attention to the tax laws that are associated with transfers of assets to any charity entity. With larger bequests over $10 million, the “Unified Transfer Tax” will need to be properly considered. 

It will be necessary for tax accountants and attorneys to structure the actual charitable contributions so that the “contributions” do not fall into the “gift” classification. There are structures and methodologies that will mitigate and even defeat the Unified Transfer Tax. All of these considerations are tax payer specific and need to be part of a comprehensive financial plan.

• IRS Form 926 – The “Transfer of Property to a Foreign Corporation” also needs to be managed by competent tax accountants and attorneys who understand the international flow of assets.   

 "The International Charity is a unique tool providing an unusual opportunity to powerfully accomplish personal charitable goals and maximum social-impact."

NxGen Wealth Management assists individuals, families and business owners in forming an International Charity to leverage the original concepts of ‘giving’ into customized strategies for individuals, entrepreneurs, new startups or even established businesses...strategies that integrate philanthropy into a business model in the earliest or most advanced stage of operations and wealth accumulation. 

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