Private Foundations

While both private and family foundations are charitable entities with tax-exempt status, they differ primarily in their funding sources and focus.

A private foundation is a broad category that includes any nonprofit organization funded primarily by a single source, such as an individual, family or corporation. Private foundations often manage an endowed pool of assets, use grants to support charitable activities and are regulated under strict IRS guidelines to ensure compliance and prevent self-dealing.

A family foundation is a type of private foundation specifically funded and governed by members of a single family. Family foundations often have a more personal focus on philanthropy, as family members typically serve on the board and actively participate in decision-making concerning recipients of grants from the foundation. The family’s shared values and vision often guide the foundation’s mission and grant-making decisions, making it a meaningful way to pass down philanthropic values across generations.

Family foundations allow for significant flexibility in charitable giving and provide a structured way to support causes over the long-term, fostering a legacy that aligns with the family’s unique values and priorities. Our firm helps families determine whether a family foundation, donor-advised fund or other structure best suits their needs. If a family foundation is the best option, we guide them through every stage of the setup and administration process.

• Grant Administration: Assisting with the review and initiation of grant proposals, ensuring they align with the foundation’s mission and objectives.
• Board Governance and Policies: Helping establish mission statements, investment guidelines and spending policies to provide a clear framework for the foundation’s activities.

• Tax and Regulatory Compliance: Preparing and filing foundation tax returns and advising on tax-exempt matters, including unrelated business income, private inurement and property tax exemptions.
• Meeting Support and Documentation: Attending foundation meetings, preparing necessary documentation and advising on corporate governance to streamline foundation operations.