Creating a Lasting Family Legacy Through Charitable Giving
For families who want charitable giving to extend beyond individual donations, a private family foundation can provide a structured way to support the organizations and causes that matter most.
A family foundation can allow a family to set aside assets for charitable purposes, make grants over time, and involve children and future generations in philanthropy. For some families, the foundation becomes an important part of their legacy—providing not only financial support to charitable causes, but also an opportunity to pass shared values from one generation to the next.
At Cook Tillman Law Group, we assist clients in determining whether a private foundation is appropriate and, when it is, help establish and coordinate the foundation with the family’s broader estate, tax, and charitable planning.
Forming and Operating a Private Family Foundation
Creating a private foundation involves considerably more than establishing a bank or investment account for charitable giving. The foundation must be properly organized, its charitable purposes defined, and applicable federal and state requirements addressed.
Our representation may include assistance with:
• Establishing the foundation as a trust or nonprofit entity
• Preparing organizational and governance documents
• Defining the foundation’s charitable purposes
• Applying for recognition of federal tax-exempt status
• Establishing procedures for directors or trustees
• Coordinating charitable gifts made during life or at death
• Planning for involvement by children and future generations
• Working with accountants and financial advisors regarding ongoing tax reporting and administration
Private foundations are also subject to special tax and operating rules. Families operating a foundation must understand limitations involving transactions with family members and other insiders, charitable distributions, investments, and annual tax reporting.
Integrating Charitable and Estate Planning
A family foundation can be created during life or incorporated into an estate plan to receive assets following death. Depending upon a family’s objectives, a foundation may also be considered alongside donor-advised funds, charitable trusts, and direct charitable gifts.
Our attorneys help clients evaluate these alternatives and determine which structure best accomplishes their charitable, family, and tax-planning goals.
If charitable giving is an important part of the legacy you want to leave, contact Cook Tillman Law Group to discuss whether a private family foundation should be part of your estate plan.
YOUR PRIVACY IS IMPORTANT
At Cook Tillman Law Group, we understand your desire for privacy. Many of our clients are business owners, wealthy individuals, entertainers, and high-profile public figures, and we do all we can to protect your privacy as well as your interests.
You can rest assured that we will keep your personal affairs in strict confidence. We commonly create trusts and other planning vehicles that are designed to keep your name and your holdings private.