Overview

When you set up a private foundation for your clients:

  • Do you worry that they might inadvertently violate IRS regulations?
  • Would you sleep better knowing that experts are providing compliance oversight for foundation transactions?
  • Do you wish you had a foundation specialist on call to discuss thorny issues?

Enter Foundation Source. We’re a decades-old, third-party administrator for private foundations. After you set up the foundation for your client, we can provide ongoing services that support you both.

Benefits of Working with Foundation Source

  • Your clients get active compliance monitoring of foundation transactions and overall centralized administrative services. The result is smooth, efficient, compliant operations.
  • Our hands-on involvement with foundation operations enables us to spot potential legal issues that otherwise might not come to light until too late. If issues arise, we refer clients back to you for counsel.
  • We educate clients about grantmaking techniques, some that require your services for legal advice, drafting documents, and negotiating contracts.
  • Our in-house tax and legal staff are well versed in the rules governing private foundations and are available for consultation about issues affecting your clients.

How We Work with You and Your Clients

Your Legal Practice

Your firm establishes the foundation, secures the EIN, and files the application for exempt status (IRS Form 1023). Your firm also creates the foundation’s policies, such as investment, expense, and conflict of interest policies.

Your Clients

Prior to funding and any other activities, the foundation becomes a Foundation Source client. Once funded, your client governs the foundation, sets strategy, and makes all granting and investment decisions. They will continue to work with their existing financial advisors, and of course you.

How We Help

We provide the services that are required to keep the foundation running smoothly and compliantly on a day-to-day basis. Each client is supported by a dedicated Private Client Advisor who serves as the primary contact and coordinates all foundation services.

Foundation Source Services

Administrative Support

Our professional staff handles the details that keep your clients’ foundations running smoothly, so they can focus on their philanthropic goals. We take care of the following:

  • Grant processing and disbursements
  • Expense processing
  • Active compliance monitoring of foundation activities
  • Tracking the foundation’s progress toward satisfying its annual 5% minimum distribution requirement
  • Foundation accounting and reconciliation
  • Tax work (990-PF and related filings) plus state filings

Specialized Online Tools

Every foundation gets access to Foundation Source Online®, a secure, web-based “command center.” Developed specifically for the needs of private foundations, this award-winning technology simplifies foundation control, communication, and collaboration. Designated foundation members get instant access and total transparency into foundation activities. Features include:

  • Individually customized viewing rights and granting permissions
  • An integrated database and specialized tools for charity research and grantmaking
  • Online tracking and reporting, including investment balances across all accounts

Philanthropic Advisory Services

Foundation Source Philanthropic Directors are experienced professionals who are available to provide philanthropic advice to the foundation via occasional phone consultations. When the foundation requires more extensive support, our Philanthropic Directors can provide in-depth, custom engagements. These could include:

  • Defining—or revisiting—the foundation’s goals and priorities
  • Translating a general interest (e.g., homelessness or clean water) into a concrete grantmaking strategy
  • Increasing family engagement, including bringing the next generation on board

In Summary

We have decades of experience supporting private foundations. We know that foundations and their needs come in all shapes and sizes. Our goal is to take the time to understand your practice and your clients, so we can help forge the best path forward. In the end, your clients want to make a difference with their philanthropy…and it’s our mission to help them do just that.