Private Family Foundations - The Key Issue to Keep in Mind When Considering a Private Foundation

A private family foundation can have many benefits.Instead of selecting activities that are truly exciting
And yes, the tax savings can be substantial and areto them, those people take on programs that they
probably at the top of your list. Yet there is an evenbelieve are more politically correct. As their
more important issue you must consider beforeenthusiasm wanes, their commitment generally wanes
making the decision to start your own. Read on toas well.
discover how to make your foundation trulyIf you want to avoid having that happen to you and
rewarding.your private family foundation, you should think
It's a very bad idea to walk into creating yourseriously about what exactly you would really like to
foundation blindly. Instead, spend some carefulaccomplish. What are the activities they would like to
thought on your long-term goals for the foundationbe able to do as part of your work for the
and the commitment that will be required both offoundation?
you and your entire family. And then, there are allDo you enjoy gourmet cooking? Are you interested
those administrative requirements. Make sure you'rein exploring other cultures? If so, you should work on
really ready by spending time on the most importantfinding ways to incorporate those into your
issue of all.foundation by building it around those activities. You
Choose the right goalscould for example set up a foundation that provides
In order to ensure that you're ready to stick withinternational gourmet cooking classes for economically
your foundation for the long haul, you have to makedisadvantaged teenagers.
sure that you choose the right goals. Those goalsIf you pursue activities that are of real interest to
must be truly yours -- and they need to have stayingyou as the founder and your families, your private
power. It's essential to get really clear about whatfamily foundation becomes a mechanism where you
you want from your foundation.can legally tax leverage and institutionalize your
What happens if you don't? The number one problemhobbies and passions.
I've seen with people setting up foundations is thatAnd if you get that part right and you have carefully
many of them neglect that crucial step and focusintegrated your foundation in your overall life plan,
strictly on the immediate tax benefits, which can beworking with it can become so rewarding that the
substantial. Unfortunately, that can easily get in theconsiderable commitment involved won't be too
way of developing a real philanthropic program.much of an issue.