ABSTRACT
Not all foundations, trusts or charities are grant-making bodies. They might, for example, be tax-avoidance schemes or straightforward businesses. Each country has its own rules on what can or cannot be a charity or foundation, so be prepared for overseas organisations to behave in a totally different manner. A wealthy person does not necessarily set up a foundation or trust simply to give money to charity. There are often considerable tax savings to be made from holding money in this way. Some trusts are means of passing money from one generation to the next without paying inheritance tax. However a genuine foundation could equally have been set up to take advantage of tax benefits for charitable giving, perhaps with the additional aim of ensuring that the creator’s charitable intentions continue to be acted upon after her death.
