A popular alternative to a private foundation, the family foundation also known as a supporting foundation is a separate, nonprofit corporation established and named by you, but organized and operated to support the broad, charitable purposes of a public charity, the Foundation. Because of this affiliation, the family supporting foundation receives the benefit of public charity tax status, providing favorable tax benefits that are
unavailable to private foundations. Additionally, the Foundation can facilitate your family’s charitable activities without any of the management burdens of a private foundation and help to maintain the momentum for generations to come.
Your family foundation is a separate entity with its own identity. It has its own mission statement, grant guidelines, letterhead and Web site. As board members, your family is actively involved in the foundation’s management and grantmaking while avoiding administrative hassles.
The board of the family foundation includes individuals appointed by the family and individuals appointed by the Foundation in consultation with the family. Our goal is to appoint people who will most ably assist your family foundation’s philanthropic goals.
Benefits of a Family Foundation
- Your family foundation avoids burdensome Internal Revenue Service regulations and receives favorable tax benefits that are unavailable to private foundations.
- The Foundation will assist in the creation of your supporting organization’s grantmaking mission and focus, structure a grant application and review process, evaluate grants made and publicize its activities. Additionally, you can access the Foundation’s range of philanthropic services for family foundations.
- We provide ongoing professional staffing and administration to your family supporting foundation, including accounting and filing of all required reports.
- You may choose to pool your supporting organization’s assets with the Foundation’s investment pools, or engage outside investment managers.
- The Foundation’s existing administrative and grant-making infrastructure enables your supporting family foundation to make an immediate community impact.
How to Establish a Family Foundation
- The Foundation works with you and your professional advisors to establish a nonprofit corporation. The Foundation provides all the appropriate governance documents and expertise.
- You transfer assets with a minimum value of $1 million to the new family supporting foundation. The Foundation will work with you and your advisors in deciding what to give.
- You and the Foundation together appoint the Board of Directors.
- The Foundation schedules the first meeting and works with each family member to play an active role.
- You and future generations of your family make a significant community impact with the infrastructure in place.