The cornerstone of family charitable planning is the Family Foundation. The Family Foundation is an entity created through funding by a Donor either during the Donor's life or at such person's death. The Family Foundation is a separate, recognized charitable organization (i.e., an entity recognized under section 501(c)(3) of the Internal Revenue Code). For those wanting to go beyond simply making a cash gift to a specific charity, the Family Foundation can bring a multitude of benefits to not only charities in general, but also to the Donor and the Donor's family. Family Foundations provide the following opportunities:

Managed Charitable Planning Large charitable donations can be made at one time to a Family Foundation with the purpose of controlling distributions to public charities in the future by the Donor and the Donor's family. Therefore, for those ready to make a large charitable contribution, either for tax purposes or as a part of their long-term charitable planning, the Family Foundation allows one to do this without instantaneously losing the control over the funds.

Family Participation Family Foundations' governing boards typically consist of the donor's family members. Therefore, the entire family can participate collectively in the charitable donation and distribution planning process. Flexible Giving Because a Family Foundation makes contributions to other public charities over time, those participating in the decision-making process for the Family Foundation have the ability to change where the distributions may be made in the future if particular charities no longer serve an intended purpose.

Tax Benefits Donations to a Family Foundation are income tax deductible during the year in which the donation is made. If made at death, the entire gift/donation is deductible for estate tax purposes. There are specific rules that apply to the deductibility of a gift to a Family Foundation for income tax purposes. Please contact our office if you like further information about the tax issues relating to Private Foundations or about Family Foundation in general and how they might apply to you.