Amplifying Foundation Giving with Opportunity Zones

Posted on 11/25/2019 1:21:57 PM

Charitable Foundations have a unique opportunity to get out of the box to amplify the impact of their charitable giving by embracing Opportunity Zones and coupling their investments with those of high net worth investors looking to secure the long-term tax benefits from the new tax law. 

In 2017, Americans gave more than $400 billion ($410.02 billion according to Giving USA 2018: The Annual Report on Philanthropy for the Year 2017, published by the IUPUI Lilly Family School of Philanthropy) to charity, yet many of these Opportunity Zone communities fail to see any meaningful investment from this massive amount of charitable giving. 

Now consider what might happen if some of that charitable giving was directed to supporting Opportunity Zone community development. Where are the challenge grants? Where are the public/private endeavors that can move the needle? Where is the support for new technologies that can address climate change, food shortages and fresh water supplies? 

The basic economic requirement to resuscitate a floundering community is the creation of jobs and jobs require business investment. So where are the charitable activities designed to drive investments in these neighborhoods that create jobs and build economic activity? 

Full document in the OppZone media library. 

About JMP OppZone Services LLC – JMP OppZone Services (“JMP”) assists investors interested in taking advantage of the tax deferral opportunities associated with Opportunity Zone investments. JMP also assists project sponsors in creating commingled vehicles to pool assets to fund investments in Opportunity Zone locations. JMP provides investors with a platform that provides maximum flexibility to leverage the benefits of the law and corresponding regulations. We can assist with getting the clock started on the deferral and holding periods. Through our network of professionals, JMP assists with structuring and support services to form the QOF creating a structure through an underlying investment in a Qualified Opportunity Zone Business (“QOZB”) that provides the investor with time to evaluate, select and invest in appropriate Opportunity Zone investments.