Establishing a Private Foundation Brings Both Responsibilities and Rewards

For families contemplating substantial charitable contributions, private foundations provide a structure to create a legacy of family charitable giving and remain a popular vehicle for charitably inclined families.

While a private foundation may appeal to an individual for a variety of reasons; private foundations come with responsibilities. Prior to forming a foundation, consideration should be given to, among other things, developing a clear charitable mission, determining appropriate assets for funding the foundation and becoming familiar with unique rules and related penalties associated with these organizations.

Whether a private foundation provides benefits superior to a donor advised fund or community foundation must be evaluated.