Families should consider an array of factors as part of their charitable planning, such as their legacy, the particular assets, market conditions, investment objectives, interest rates and cash flow needs, as well as the mission of the charitable organizations.
To realize the social benefits their donors seek, foundations must clearly define their missions, create spend policies that correspond with those missions and set investment strategies that suit those policies.
Putting a financial value on social outcomes can help funders determine whether an organization is worth supporting, understand the impact that grantees are having and identify where organizations need help.
In the post-Madoff era, the foundation and non-profit sector continues to struggle with how to invest philanthropic assets most appropriately and how to ensure that boards and staff are managing investments prudently.
Disasters bring out the urge to help, but would-be donors often are not sure about where to donate. Schwab Charitable Fund looks at the hierarchy of disaster relief, considers the importance of general disaster expertise vs. local expertise for a charity, and discusses how to encourage accountability. A targeted list of recommendations for donors is included.
In addition to having an external mission, many family foundations create an internal one specifying how the foundation will function in family-building, education and the transfer of family values from one generation to the next. Foundation Source offers concrete examples of how some families are using their foundations to make a difference within the family as well as in the external world.
The new health care reform legislation adds a 3.8 percent tax on net investment income for many charitable donors starting in January 2013, while not allowing charitable deductions to be used to offset the tax. This article from Hemenway & Barnes explains how an interest-free loan to a charity can provide the same tax benefits as a charitable deduction.
At its best, family philanthropy provides families with an opportunity to reinvigorate their grantmaking, inviting the contribution of fresh and original ideas and approaches from younger generations, and bringing families together in pursuit of a mission inspired by common values. Research conducted for Credit Suisse shows the diversity of experience of family philanthropists around the globe.
Increasingly, U.S. foundations are funding international causes either through direct giving to overseas recipients or U.S.-based international programs. Foundation Source offers information and guidelines to help private foundations legally and effectively fund these international efforts without violating U.S. tax law.
KPMG Australia explores six areas related to family business succession: preparation, leadership change, new directions, governance as a priority, performance measurement and pride in the family business. The report focuses on Australian families but offers suggestions and insights that can be useful to families anywhere.