The proposed structure
Give each trust a clear job.
This is a framework for planning. The governing documents, actual activities, ownership, and tax classification determine what each entity may do.
01 / BUSINESS
Business Trust
Define the proposed ownership and administration of business activities, contracts, and intellectual property.
- Document who owns and supplies each deliverable.
- Record revenue, costs, licenses, and agreements.
- Allocate work to the entity receiving it.
The “Business Trust” name does not determine tax classification.02 / FAMILY
Family Trust
Organize family assets and administer support under the trust’s terms.
- Maintain asset and beneficiary records.
- Track authorized receipts and distributions.
- Separate personal spending from program expenses.
Family payments retain their applicable tax treatment.03 / FAITH & CHARITABLE MISSION
Faith-Based Trust
Advance the organization’s qualifying religious, educational, or charitable mission.
- Document eligible donations and mission spending.
- Review actual services and reasonable pricing.
- Maintain conflict disclosures and approval records.
Section 508(c)(1)(A) provides an exception to certain filing requirements for churches, their integrated auxiliaries, and conventions or associations of churches.
From idea to reviewable records
Document the arrangement.
01Define the parties
Record legal entities, ownership, trustee powers, and the confirmed tax classification.
02Describe the work
List dates, deliverables, recipients, expenses, and any existing payment commitments.
03Review the terms
Use supported pricing, conflict disclosures, and the appropriate independent approval process.
04Compare all effects
Review donations, payments, taxable receipts, distributions, and administration costs together.