Private foundation for personal use

Question

Could one set up a personal private foundation, make contributions which are tax deductable, invest and only get the 2% tax, and have the 5% grant payout to yourself?

It seems to be what most of the USA rich are doing.

Answer 1

To establish a private foundation requires the following :

1. Establish its purpose and its guidelines for making grants.
2. Decide whether to structure it as a charitable trust or a non-profit organization.
3. A private foundation must benefit the public in order for it to maintain its tax exempt status.
4. Thorough records, tax returns and skilled employees must be part of the foundation.
5. Must obtain an employer identification number and file organizing documents with the IRS.
6. Must file necessary paperwork to obtain in-state tax exempt status.
7. Must avoid individual organizations from accruing too many benefits.
8. Must not allow insiders to accrue too many assets or too much income.
9. May not get involved in political campaigns.
10. Must limit their involvement with disqualified persons such as big contributors.

So, it looks like you may be engaged in wishful thinking.