• Do you want to be able to reimburse charitable expenses?
• Would you like to hire staff or compensate family members for their philanthropic work?
• Will you want to go beyond traditional gifting to creative forms of support, such as loans, international giving, scholarships, awards, and donations made directly to individuals and families in need?
• Do you want to run your own charitable programs (e.g., coat drive)?
• Are you planning any major gifts or multi-year commitments that might require a formal agreement with the grantee?
• How would you like to fund your charitable vehicle, both initially and in the future? What level of funds would you like to start with?
• What types of assets do you plan to donate? Do you have highly appreciated personal property or real estate that you would like to contribute?
• Will your initial choice of charitable vehicle be an irrevocable decision? Might future events inspire you to change your mind and move funds from this charitable vehicle to another?
Note: If your client is weighing a choice between a private foundation and a donor-advised fund, you should be mindful of the fact that while the funds in a private foundation can always be transferred to a donor-advised fund at some later date, it is all but impossible to convert a donor-advised fund into a private foundation. Your advice is therefore critically important to ensure they make the right choice.
Supporting Clients with Established Private Foundations