What is Giving Compass?
We connect donors to learning resources and ways to support community-led solutions. Learn more about us.
This piece is a part of the "Impact Giving Classics" library, curated by Stanford PACS.
Donors and families who establish private foundations often have a variety of issues they care about, and are looking for a vehicle that gives them the flexibility to make a wide variety of choices on where to invest their philanthropic assets with other members of their families across multiple generations.
A key advantage of the operating foundation model is that it allows the founding donor or family to invite others to contribute to its endowment for the programs or services it supports, and for these other investors to receive the same tax benefits as for gifts to a public foundation.
Other reasons that donors and families may choose to establish a private operating foundation include:
- An interest in managing activities that are directly aligned with your philanthropic mission
- A desire to engage directly and regularly with the community you serve
- An interest in encouraging others’ investment in your philanthropic mission, and in leveraging your family’s investment
Read more about a private operating foundation at National Center for Family Philanthropy.