“The advisor can act as the counselor who helps think through the options,” Snow said. “This work can also help avoid problems between board members in the future. When there is a plan in place, you know everyone is operating off the same page.”
Advisors should also determine what risk profiles are appropriate, depending on if the foundation's money is to be spent down over a period of years or if it is to exist into perpetuity.
“Advisors are often nervous to get involved in the grant-making work, so [establishing buckets] is a perfect way for them to get involved,” Snow said. “It is something the advisor can bring up at the first board meeting.”