Imagine a charitable giving approach that can assist with your goals of giving to meaningful causes while potentially keeping maximum control and flexibility over gifts, and involving your family for generations to come.
“Private foundations can enable clients to be very purposeful about their philanthropy,” says Mike Penfield, Charitable Services Group Managing Director for The Private Client Reserve. “Rather than just give money away, they can allow clients to donate to philanthropies they believe will do the most good.”
U.S. Bank cannot provide tax or legal advice, or draft legal documents, but here Penfield shares his insights on the potential benefits of private foundations. He also discusses other charitable giving vehicles that you may want to discuss with your tax and legal advisors to see if they are appropriate for you.
Why might a client choose to create a private foundation?
Many of our clients who start private foundations have had great success with their private businesses and now want to run a philanthropic business. Similar principles from the private business sector apply to private foundations. For example, some clients who start private foundations want to donate to the most efficient, cost-effective philanthropies.