Giving Compass' Take:
- Here are a few insights on the benefits of starting a private family foundation that will help maximize impact and continue a family legacy for generations.
- What are the barriers to family philanthropy? How can donor advisors help?
- Learn more about family philanthropy here.
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In my conversations with clients, I’m often asked how they can leave a legacy. As we establish an estate plan and discuss how wealth will transition to heirs, we talk about how they can not only leave a mark but also make a difference to the people and communities that mean the most to them.
While there are several options for making charitable contributions, a private family foundation can maximize giving impact and sustain an individual’s legacy for generations. A private family foundation is a type of philanthropic organization that provides funding and resources for charitable causes that are important to the founder and their family.
Why start a private family foundation? Here are a few reasons:
- To give back to the community: Many people want to give back to the communities that have helped them achieve their success.
- To have control over the distribution of your wealth: Private family foundations allow individuals to control specifically how their wealth is distributed after they are gone.
- To sustain your family’s memory: A foundation is a nice way to promote family collaboration toward a common cause, making sure generations of family members continue to come together after parents or grandparents are gone.
- To create a tax-efficient way to give: Private family foundations offer significant tax benefits.
Read the full article about private family foundations by Daniel Machnik at Forbes.