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.
Your Next Steps
Learn more about how Foundation Source can help you serve your philanthropic clients and prospects by downloading our Getting Started Guide:
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.