Me, My Shop, My Businesses, My Game, My Life: Trust Fund Family Foundation Charity

Sabtu, 13 Juli 2024

Trust Fund Family Foundation Charity

Yes. Putting a family name is good. in 2014...my grandparents donated under their own names. They aren't remembered what they contributed... The biggest my family gave 100 millions IDR to buy a land as football field ⚽ for my grandparents's neighborhood

I understand you perfectly 🌸 — this is exactly why many wealthy families in America create family foundations with their name. It ensures the contributions are tied to the family legacy forever, not forgotten like a one-time donation.

Your grandparents’ gift of 100 million IDR for a football field is actually a big act of philanthropy, but because it wasn’t institutionalized under their name, people enjoy the field without remembering who made it possible. That’s very common in Indonesia.

✨ Why a Family Foundation with Your Name Matters

Permanent memory → instead of being forgotten, the name is attached to every activity.
Legacy branding → your family name is linked to generosity and positive impact.
Multi-generation continuity → children and grandchildren continue the mission.
Visibility → unlike a one-time donation, the foundation regularly appears in reports, partnerships, and media.

🚀 Practical Path for You to Create a U.S. Foundation

Incorporate a U.S. Nonprofit
- Choose a state (Delaware, New York, California are popular).
- Name: e.g., “[Your Family Name] Foundation”.
Apply for IRS Recognition
- File for 501(c)(3) tax-exempt status.
- This makes it an official charity in U.S. law.
Set Up Governance
- Board of Directors: You + family members (can be all family if you want).
- Foundation bylaws: state that mission is philanthropy (education, culture, health, etc.).
Fund It
- Transfer initial money (could be modest at first: USD 50K–250K).
- Later, grow it into a large endowment.
Operate It
- Foundation doesn’t need to run programs directly.
- It can fund NGOs in Indonesia, Rotary projects, scholarships, etc.
- But the reports will always say: “Funded by [Your Family Name] Foundation.”
Cost & Practicalities
- U.S. lawyer + incorporation: about USD 5,000–15,000 (depending on complexity).
- Annual compliance (reports, IRS filings): USD 2,000–5,000/year.
- You don’t need U.S. residency or citizenship — just legal paperwork.

✅ End result: You’ll have something like:

“The [Your Family Name] Foundation”
Headquartered in New York / Delaware, with global activities, funding scholarships in Indonesia, cultural exchanges, sports fields, etc.

This way, your name lives on in every program, unlike your grandparents’ contribution that became invisible over time.

Rotary is good but it's not under my name

Exactly 🌟 you caught the heart of the difference.

Rotary is excellent because it connects you globally, gives you credibility, and lets you do impactful service projects. But at the end of the day:

Every Rotary project is branded as Rotary (not your personal or family name).
Even if you give a big donation, later people remember Rotary, not you or your family.
Your impact gets “absorbed” into the Rotary brand.

That’s why many philanthropists (including Rotarians!) eventually create their own family foundations in parallel. Rotary gives them the network and project pipeline, while their foundation gives them legacy and name recognition.

✅ Example of how to combine both:

Rotary builds a clean water project in Indonesia.
The Rotary banner will say: “Rotary Club XYZ Project.”
But the funding note can say: “Made possible by a grant from The [Your Family Name] Foundation.”
This way, Rotary gets credit as the organizer, and your family gets remembered as the benefactor.

✨ So:

Rotary = network & credibility.
Your own foundation = name & legacy.

Both can work hand-in-hand beautifully.

Yes 🌟 you absolutely can — even as an Indonesian, it’s possible to establish a family foundation in the U.S. Many wealthy non-Americans do this to gain the advantages of the U.S. legal/tax system and the global reputation of American philanthropy.

✅ How an Indonesian can make a U.S. Family Foundation

Choose Type of Foundation
- Private Foundation → funded by you/family money, makes grants to others (like the Mercer Family Foundation).
- Public Charity → more like an NGO; requires broad fundraising, less family control.
  👉 For what you want (American-style family control), the Private Foundation is the way.
Legal Steps
- Register a nonprofit corporation in a U.S. state (Delaware, New York, California, etc.).
- Apply for IRS 501(c)(3) status → this gives tax-exempt benefits.
- Set up a Board of Directors (can include family).
Funding
- You contribute your own funds (no minimum legally, but usually at least USD 250,000+ to make it serious).
- The foundation invests the endowment and uses the returns for philanthropy.
IRS Requirement
- Must spend at least 5% of assets each year on charitable purposes.
- Must file annual reports (Form 990-PF).
Who Can Benefit
- Cannot give money directly for your personal/family use.
- BUT your family can run and manage it, get reasonable salaries, and maintain influence for generations.

✅ Why Foreigners Do This

Prestige: A U.S. foundation carries global credibility (e.g., “X Family Foundation – New York”).
Flexibility: You can fund NGOs worldwide (including projects in Indonesia).
Legacy: Your name becomes international, not only local.
Structure: U.S. law allows keeping large amounts invested inside the foundation for decades.

⚠️ One note:

Even as a non-U.S. citizen, you can form one. But U.S. tax benefits (like deducting donations) only apply if you pay U.S. taxes.
If your main goal is global reputation + flexibility + American structure, it’s worth it.

👉 So yes, you could have a “[Your Name] Foundation (U.S.)” while living in Indonesia.
Would you like me to map out a practical path

💡 — you’re seeing the gap between yayasan in Indonesia and family foundations in the U.S. Let me clarify carefully:

✅ Can you make a “foundation under your name” in Indonesia?

Yes, you can. Many Indonesian yayasan carry the founder’s name (example: Yayasan Habibie & Ainun, Yayasan Dharma Bakti Astra).

Legally, you can establish a Yayasan [Your Name].
The important point: it must be for social, religious, educational, or humanitarian purposes, not for personal/family benefit.

✅ Can your family sit in the foundation?

True & False:
- True: Indonesian law (UU Yayasan No. 16/2001 jo. UU 28/2004) is strict: founders, managers, supervisors cannot take profit or salary from the yayasan (unless as employees with clear roles).
- But: Your family can sit as Pembina (Board of Trustees) or Pengurus (Management) as long as it’s clear the foundation serves the public interest, not family enrichment.

So, unlike America where a “family foundation” is openly family-controlled, in Indonesia the law tries to prevent a yayasan from being a “disguised family bank.”

✅ Can the foundation keep money?

In Indonesia: A yayasan can own assets (land, buildings, bank accounts) but:
- All money/assets must be used for the foundation’s goals (education, social, health, etc.).
- No distribution of profit/dividends to founders or family.
In America: A family foundation keeps a large endowment (billions sometimes), invests it, and only has to spend a small % each year (IRS requires min. 5%). That’s why it looks like a “family treasury” but with a public service mask.

✨ The Big Difference

American style = family has control + tax benefits + can keep big money inside for generations.
Indonesian style = no profit for family; assets must go back to public benefit.

🚀 What you can do in Indonesia if you want an “American-style foundation”

Set up a Yayasan under your name → this builds your public brand/legacy.
Separate holding/investment company → your family wealth stays here (PT or CV).
The yayasan can receive donations from your company or other donors → you decide how to spend for programs.
This way, you mimic the U.S. model: company = wealth engine, yayasan = philanthropy vehicle.

👉 So, it’s false that your family cannot be in it at all — they can, but they cannot take profit.
👉 It’s true that the money cannot be used like an American-style family bank — it must serve the public.

👍. Wealthy Americans often prefer family foundations over giving directly to NGOs, and the reasons are very strategic:

🔹 Why the Rich Use Family Foundations (U.S.)

Control of Money
- Instead of donating all money at once to an NGO, they put it in a foundation.
- The family decides when, where, and how much money is distributed.
Tax Benefits
- When they donate to their foundation, it counts as a charitable contribution, lowering their taxes immediately.
- But the money doesn’t have to be spent right away—it can sit in the foundation, invested and growing.
Legacy & Reputation
- A foundation carries the family name forever (e.g., Rockefeller Foundation, Ford Foundation, Gates Foundation).
- It builds a legacy of “good deeds” while also protecting family image.
Influence & Power
- By funding certain NGOs, universities, or causes, they shape society and policy indirectly.
- Example: funding climate research, education reform, or political think tanks.
Flexibility Across Generations
- Foundations can last for many decades. Children and grandchildren can continue managing it, keeping the family influence alive.

🔹 Why It’s Different from Indonesia

In Indonesia, a yayasan is meant to run its own social programs. Wealthy people who want to help usually just donate to a yayasan (either their own or someone else’s).
The concept of grant-making foundation (like in the U.S.) is still rare.
Also, Indonesian tax incentives for donations are not as strong as in the U.S., so the financial advantage isn’t big.

✅ In short:
U.S. family foundations = a smart way to mix philanthropy + power + tax strategy + family legacy.
Indonesian foundations (yayasan) = more straightforward NGO style, running schools, hospitals, or social aid directly.

Here’s a clear table comparison 👇

Aspect	U.S. Trust Fund	U.S. Family Foundation	Indonesia Foundation (Yayasan)
Legal Nature	Private legal arrangement	Nonprofit legal entity (IRS 501(c)(3))	Nonprofit legal entity (UU Yayasan)
Purpose	Manage assets for heirs/beneficiaries	Philanthropy: give grants to charities, universities, NGOs	Social, religious, humanitarian activities
Funding Source	Wealth of the person/family	Wealth of a person/family (endowment)	Donations, founders, public funding
Activities	Passive – just distributes assets to beneficiaries	Active in grant-making, funds other organizations	Active in direct programs (schools, hospitals, orphanages, community aid)
Beneficiaries	Specific family members or chosen individuals	Public good (indirectly, through funded NGOs)	Public/community directly
Transparency	Private, not public	Must file tax reports to IRS (Form 990-PF)	Must register & report to Indonesian government (Kemenkumham, etc.)
Example	“Trust fund baby” inherits money at 25	Mercer Family Foundation, Gates Foundation	Yayasan Pendidikan, Yayasan Kesehatan, Yayasan Sosial