Sunsetting a Private Foundation

Client Story

Our client’s foundation had been in operation for decades. With aging board members and an interest in making an enduring impact during their tenure, the foundation wondered what the next steps for its governance and grantmaking should be. The board members weren’t sure if they could find interested and capable successors, and they also wanted to ensure that the foundation’s resources were going to make a difference in the way that the founder intended. Each of the board members were leaning towards winding down the foundation’s operation, but certain questions were holding them back:

• Would sunsetting the foundation honor the wishes and legacy of the founder?
• If we choose this path, how do we do it responsibly?
• What is our obligation to the community at large and to our grantees?
• How can we ensure that the remaining resources of the foundation are put to best use and have a positive impact on the communities that we serve?

While the foundation’s board members had some ideas about what they wanted to accomplish, they weren’t clear on how to reach their goal. They wanted to understand more about how the sector might handle similar situations and hear options and recommendations from field experts before taking action.

FOUNDATION PROFILE*

ASSETS: ~$15M
GRANT VOLUME: ~20/year
EMPLOYEES: 2
NUMBER OF DIRECTORS: 4
GENERATIONS ON BOARD: First (G1) and Second (G2)
YEARS OF OPERATION: 40

*At the time of the project.