If you’re like most people, you already give to charity. But perhaps you’d like something more. How would you like to:
– Go beyond checkbook giving and get more out of your philanthropy?
– Unify your family by establishing a permanent philanthropic legacy?
– Build an enduring structure for your giving that can be handed over to your children to continue?
– Have philanthropic experts to help you get started whom you can tap whenever you need advice?
Benefits of a Foundation
Here are a few of the unique benefits of this powerful, flexible giving vehicle:
- Get a current-year tax deduction, but give when you feel like it
- Retain full legal control over foundation governance, assets, and spending
- Create a lasting legacy that links the family name with good works
- Hire family members and reimburse foundation-related expenses
- Pass on values and skills to younger generations
- Make tax-deductible grants directly to individuals in need
- Run charitable programs without setting up a separate nonprofit
Private Foundations and Donor-Advised Funds: A Side-by-Side Comparison
In looking to create a charitable vehicle, you may be considering whether to establish a private foundation or a donor-advised fund (DAF). At the most basic level, the difference between a DAF and a private foundation is the construct, or form, in which each entity is created and operated
Funding and Investment Options
Private Foundations are typically funded by a single individual, family, or business. They can be funded with, and continue to hold, a wide variety of assets. Other giving vehicles typically liquidate any assets that aren’t publicly traded securities shortly after funding.
Assets that can be held in a private foundation include:
- Cash and publicly traded securities
- Alternative assets, including private equity
- Real estate
- Tangible assets (art, jewelry, collectibles)
- Intangible personal property (copyrights, patents, royalties)
- Life insurance and annuities
If you have a Charitable Remainder Trust, you can typically name your foundation as the beneficiary.
Foundation Source does not manage assets. We work closely with the trusted financial advisor you designate, and share our expertise on special considerations that affect assets within a private foundation.
Private foundations have broad latitude to pursue any activities as long as they advance a charitable purpose.
In addition to supporting public charities and other types of nonprofit organizations, a foundation can:
- Make grants to individuals for disaster relief and economic hardship
- Provide loans that are repaid to the foundation
- Set up scholarship and award programs, and choose the recipients
- Grant directly to international organizations
- Provide funds to for-profit companies, as long as they’re used for a charitable purpose
- Run its own charitable programs, such as a coat drive or soup kitchen
Our staff of foundation experts will guide you every step of the way, so you can easily take advantage of every IRS-sanctioned option to accomplish your charitable goals.