Clarify why you want to set up a foundation.![Cost Cost](/uploads/1/2/4/7/124710075/808093228.jpg)
![Services Services](/uploads/1/2/4/7/124710075/671281026.png)
![Cost Cost](/uploads/1/2/4/7/124710075/808093228.jpg)
![Services Services](/uploads/1/2/4/7/124710075/671281026.png)
Wealth Management Magazine. When to Open Donor-Advised Funds vs. Private Foundations? That they can accomplish their charitable goals through a DAF for significantly less cost and can. Considering a private foundation. People who consider a forming a private foundation do so for many different reasons. When evaluating whether a private foundation might be right for your client, there are many considerations, ranging from selecting the assets that will be gifted to discovering the client’s appetite for administration and method of making grants.
There are many reasons people choose to set up a private foundation. Before you make this step, you should think seriously about your reasons, and what you want to accomplish. They might include:- Tax advantages - They can be significant. As an individual, you can donate up to 30% of your annual income to a private foundation and receive a tax deduction.
- Controlling your philanthropic activities - Unlike other planned giving vehicles, a private foundation allows you - the founder - to tightly control what types of charities receive support, as well as the management of the assets funding that support. #*Supporting a pet cause - If you have a cause that is dear to your heart, you might want to set up your foundation to fund charities that are working in that area.
- Creating a legacy - You might choose to name your foundation after yourself, to carry on and associate your family name with good works. You could also consider naming the foundation after someone you want to honor.
- Involving your family - A private foundation can be a way to get your family members involved in philanthropic activities. You can name them to the board, or hire them as staff.