Because of the success of that person’s endeavor and because private foundations are easier to set up now, Mosley says he has used the same private foundation structure to help other families achieve their philanthropic goals.
“I have helped start private foundations for some families with as little as $250,000 for the initial contribution,” Mosley says. “It has become so easy to establish a private foundation that it has become a way for some families to teach their children about helping others. When the money is properly managed with diversified allocations the money can grow.”
Creating a private foundation is also personally satisfying for the financial advisor, says John Sargent, an executive director of Morgan Stanley Private Wealth Management in New York City.
“Helping a client create a private foundation lets the advisor transcend the typical financial relationship with the client and is also something the advisor can truly enjoy,” Sargent says.
Sargent has advised more than a dozen clients on setting up foundations. Some were people who were involved in large foundations who branched off to create their own.
“One client worked with a large environmental foundation out of Washington, D.C. He was particularly interested in providing water resources in Africa, so he created his own foundation to work on that issue.
“Another client was concerned about veterans’ housing issues so he set up a foundation to create veterans’ housing in three states,” Sargent says. “But whatever the issue the client pursues, as an advisor, you have helped make an impact on the charitable world, and that is very satisfying for the advisor as well as the client.”