Foundation Source will have your new foundation up and running in less than a week. Three steps, and we take care of the rest.
Unlike a donor-advised fund, a private foundation is an independent legal entity over which you retain complete control. You have final say over how the foundation is governed, how foundation assets are invested, and which nonprofits to support.
In addition to a wide range of options for philanthropic spending, foundation assets can be used for administrative expenses, some of which count toward the annual 5% minimum distribution requirement. These include foundation related travel, leasing office space, and paying family members who serve as directors or foundation staff.
Private foundations help unite families – who may be separated by distance, age, and interests – as they work together toward common philanthropic goals. The foundation can also serve as a training ground to teach values and skills to younger generations, such as leadership, teamwork, and investment management.
A foundation can exist in perpetuity, attaching the family name to a legacy of giving that endures through the generations.
Other giving vehicles typically liquidate any assets other than publicly traded securities shortly after funding.
Assets that can be held in a private foundation include:
And if you have a Charitable Remainder Trust, you can 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.
In addition to supporting public charities and other types of nonprofit organizations, a foundation can:
Our staff of private foundation experts will guide you every step, so you can easily take advantage of every IRS-sanctioned option to accomplish your charitable goals.
Typically, donations to a private foundation are tax deductible up to 30% of adjusted gross income (AGI) for cash, and up to 20% of AGI for appreciated securities, with a five-year carry forward to use any remaining portion of that deduction.