Wealth advisors across the country are partnering with Foundation Source to provide private foundation services for their high-net-worth and ultra-high-net-worth clients and prospects. They know that delivering these services as part of an overall wealth management plan can provide them with:
– Deeper, more secure client relationships
– A natural introduction to the next generation
– Net new assets under management
– Tools for converting an unproductive portfolio into productive assets
And because Foundation Source offers the full control, flexibility, and cachet of a private foundation with the ease and simplicity of a donor-advised fund, you can offer a best-of-breed charitable vehicle designed to meet the needs of your most demanding and sophisticated clients.
Advisors Talk About Private Foundations
Historically, private foundations were expensive and complicated to set up and run. Foundation Source changed that forever.
Foundation Source provides a fully outsourced service that modernizes private foundations. Nevertheless, the following common misperceptions still persist.
Misperception: It takes at least $5 million to start a private foundation.
The Reality: Of the 91,000 foundations in existence today, 88% have assets below $5 million and 66% are under $1 million. Through Foundation Source, it is practical to start a foundation with as little as $250,000 and grow it over time.
Misperception: Foundations are time-consuming and costly to create.
The Reality: Foundation Source can have a new private foundation up and running in less than a week for a very reasonable fee.
Misperception: A donor-advised fund is easier to manage.
The Reality: Today, a foundation can be as easy to manage as a donor-advised fund. Foundation Source takes care of all the administrative tasks and provides easy-to-use online tools that keep donors in control.
Misperception: If your client chooses the wrong vehicle, he or she can unravel the decision later.
The Reality: If for some reason it becomes necessary to close down a private foundation, you can always grant those funds to a donor-advised fund. However, it is all but impossible to convert a donor-advised fund to a private foundation. Contributions to a DAF are irrevocable, owned and held by the sponsoring organization.
Foundation Source can set up a new private foundation for your client in less than a week.
Here are some characteristics to look for when evaluating your client and prospect base:
- A history of giving or an articulated desire to fund philanthropic programs
- Needs a tax-management strategy in anticipation of the sale of a business, an inheritance, or a legal/domestic settlement
- A large holding of highly appreciated stock that would incur capital gains taxes if sold
- An under-diversified asset position
- Anticipation of an intergenerational transfer of wealth or a family business
- A desire to avoid taxes on the sale of assets or upon death
- A desire to build a family legacy, make a difference in the community, pass on values, and teach financial skills to children and grandchildren
- A lack of inheritors to receive the wealth
- Currently has a charitable remainder trust or charitable lead trust
Our Foundation Planning Guide will help you identify client scenarios where a private foundation may be the right solution for your clients’ planning needs.
Why Work With Us
We serve 1,700 family, corporate, and professionally staffed foundations, of all sizes, nationwide. Here’s how we can assist you:
Private Foundation Expertise: We back you up every step with sophisticated private foundation expertise, so you can confidently engage clients and prospects on philanthropy and private foundations. Our experienced Managing Directors, located across the country, are ready to answer your questions and to join you in client conversations, as appropriate.
We Support Your Client Relationships: You, as the wealth advisor, maintain the primary relationship with your clients. You manage the foundation assets while Foundation Source provides all other services needed to operate an efficient, successful philanthropic enterprise.
We Take Care of the Details: Your clients are in good hands. We take care of everything, from creating a new foundation to handling the most complex needs of large, already established foundations.
Fully Outsourced Services: We provide fully outsourced foundation administration, compliance monitoring, and advisory services, supported by web-based tools that donors use to direct foundation activities.
Excellent Customer Service: Your clients will receive excellent, responsive customer service, as evidenced by the 98% satisfaction rating we receive from our clients year after year.