The Life Cycle of a Private Foundation

Excellent post for those who want to be in the “business of philanthropy”. For those who want to be purposeful but don’t want the headaches, a Donor-Advised Fund (DAF) is a great alternative – it acts as a Philanthropy Account (similar to a Retirement Account / IRA). In other words a DAF helps you plan, save and spend for a specific purpose (charitable giving, in this case) with tax-favored benefits. Contact your advisor before engaging in any of these endeavors to determine what is best for your circumstances and goals.

Private Wealth Matters

The private foundation (PF) is a great tool for an individual or family that wants to be in the “business of philanthropy.” It provides a tax exempt shell within which to house assets to operate the business of philanthropy. It is a structure that survives the grantor and establishes the family as philanthropists for the ages.
It can also be a royal pain in the neck in terms of its care and feeding, with tedious initial and ongoing filings and returns, meetings and other documentation.
Today, we are going to outline the life cycle of a PF so that you can see a bit of what is involved and why I always say that PF’s are appropriate for those who want to be in the “business of philanthropy” rather than those who are looking to fund a charitable pocketbook. It is not meant to be exhaustive by any means. (Warning:…

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Posted on August 22, 2014, in Uncategorized. Bookmark the permalink. Leave a comment.

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