Foundation Creation and Comprehensive Support
Foundation Source is the only single-source provider focused solely on the diverse and complex needs of private foundations. Our services range from the basic support all foundations require to highly customized solutions for complex and sophisticated giving programs.
The result: better-run private foundations and more effective philanthropy.
Get the Foundation Facts
Historically, private foundations were expensive and complicated to set up and manage. With Foundation Source, that is no longer true.
Here are some common misperceptions about private foundations that still persist today.
Misperception: Your client needs at least $5 million to start a private foundation.
The Reality: Of the 91,000 foundations in existence today, 66% have assets under $1 million, according to IRS data. Foundation Source makes it practical to start a foundation with as little as $250,000.
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 a client chooses the wrong vehicle, he/she can unravel the decision later.
The Reality: With a private foundation, the donor is able to grant all the funds to a donor-advised fund and close the foundation. 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.
Misperception: Private foundations pay exorbitant excise taxes.
The Reality: A foundation earning 5% income on $1 million in assets ($50,000) would pay just $1,000 (2%) in excise taxes on that income. With careful planning, foundations can reduce that rate to 1% in select years without affecting the organizations they support.
Working with private foundations is the only thing we do.
We work with a wide range of law firms, from individual practices that have limited experience with private foundations to large firms with entire departments devoted to exempt organizations. Here's how we can help you serve your clients:
Legal Sounding Board
Our legal staff knows the IRS Code pertaining to private foundations inside and out, but we do not provide legal advice to clients. You can tap our expertise about foundation matters without worry that we will interfere in your client relationship.
Peace of Mind
Our daily involvement enables us to spot potential compliance issues before they become problems, and refer those clients back to you.
Our understanding of the day-to-day operational issues of foundations can help guide you when making recommendations to your clients.
Learn more about how Foundation Source can help you serve your philanthropic clients and prospects by downloading our Getting Started Guide:
Or view a demo of the web-based tools we provide to help donors manage their day-to-day foundation activities.
Or give us a call at 800-839-0054 to ask any questions or to discuss the needs of a specific client.
Hemenway & Barnes
Foundation Source is great at helping keep foundations out of trouble.
Hemenway & Barnes
There are so many rules governing private foundations that are not necessarily obvious. Foundation Source is great at helping keep foundations out of trouble. They provide the right policies and checklists to help prevent mistakes, and their back-office and tax preparation services are less expensive than buying these services à la carte from a variety of professionals. Our clients are very happy with Foundation Source. They get good results, inexpensively.
McDermott, Wills & Emery
Foundation Source provides the experience and expertise that make private foundations operate efficiently and effectively.
McDermott, Wills & Emery
Foundation Source provides the experience and expertise that make private foundations operate efficiently and effectively, not only from a standpoint of legal compliance, but also best practices for grantmaking. I’ve worked with various individuals at the company, and have found them to be very knowledgeable in this complicated area and extremely attentive to the needs of my clients.