PANAMA CHARITABLE FOUNDATION

Panama Charitable Foundation

A Panama charitable foundation provides international opportunities for wealthy individuals to establish a charitable structure to further their philanthropic goals - while still maintaining a degree of control over how the charity operates and parcels out its funds. Of course the same would apply if such a charitable foundation were to be set up in the U.S. or U.K. for instance, but there is much red tape, and the fact that everything has to be disclosed to the revenue agencies and to always have them looking over your shoulder can get somewhat tiresome. What if you could do the same thing offshore, where you would have no reporting requirements in your home country, but you can control how and where the funds are spent?

A wealthy individual with cash, marketable securities, liquid assets, or other assets can irrevocably transfer the assets to a foreign "charity”. A Panama Charitable Foundation is the perfect vehicle for setting up such a charity offshore.

If no deduction or reporting is acceptable, and virtually no governmental oversight is a desired element of the structure, then the assets would be contributed directly to a foreign charity. Once the assets reach the foreign charity, there will be virtually no onshore connection or oversight with regard to the assets. The country in which the charity is formed ensures fulfillment of the foundation's charitable mission. There is virtually no oversight by the Panamanian authorities so long as all contributions are derived from outside of Panama.

Each foundation is "custom tailored" for our clients. The foundation can be managed by a "perpetuating board." That is a group of individuals who will serve as the directors and, who will have the right to re-appoint themselves or their heirs. Hence, control of the foundation can be maintained for generations.

The foreign charity can pay the directors to attend board meetings, and provide him/her with transportation to all board meetings. There is no reason why some directors cannot be paid more than other directors. Any stipends paid to the client as a board member (or for other services provided to the charity) are includable in his/her income. Further, the client can provide services to or on behalf of the foreign charity and be compensated for such services.

Since a charity is separate from its founders, it offers a unique degree of isolation from creditors and former spouses.

A foreign charitable foundation is an excellent vehicle to fulfill your dreams of doing good for society and mankind, immortalizing you goals - and at the same time generate international opportunities.

If you are interested in this rather novel approach to combining offshore asset protection and estate planning with a real charity doing real charitable works please contact us.