Is a Private Foundation Right for Your Client?

Would your client benefit from a Private Foundation?

Annually, 98% of families with a net worth in excess of $5 million give to charity; philanthropy can be a key element in tax management and estate planning, in addition to instilling a sense of responsibility to younger family members.

A Private Foundation is a privately funded and controlled tax-exempt entity established for a charitable purpose. Unlike a public charity, which receives support from the general public, a private foundation is typically supported by a single source—usually an individual, family, or company.

If the family you are advising possesses a clear commitment to philanthropy and has significant tax exposure, a private foundation might be an excellent wealth planning tool because it offers significant wealth management benefits; it is also a great way to create a legacy while working toward making the world a better place for everyone.

In this article, Foundation Source details the benefits of establishing a Private Foundation as an alternative to traditional philanthropic planning.