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:

  1. To give back to the community: Many people want to give back to the communities that have helped them achieve their success.
  2. 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.
  3. 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.
  4. 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.