Problem: How Can I Control My Charitable Legacy?
Solution: Consider a Private Family Foundation Through Foundation Source!
Leave Your Charitable Legacy with a Private Family Foundation
What is a Private Family Foundation?
A Private Foundation is a private organization established by a family to pool and distribute funds for philanthropic purposes in accordance with their mission and values.
| Funding Minimum: | $250,000 |
| Distribution: | Generally, must distribute at least 5% of their assets annually, based on previous year’s net average assets. |
| Legal: | A distinct legal entity, usually established as a nonprofit organization under state and federal laws. |
| Control: | Direct control over the grants made by the foundation. |
| Privacy: | Grants are subject to public disclosure, offering less privacy. |
| Manage: | Administrative duties such as compliance, accounting, and reporting may be outsourced to a third-party service provider. |
| Legacy: | Can support long-term charitable giving and involve multiple generations in the family’s philanthropic goals. |
| Grants: | Computerized grant management allows you to manage and track grants while retaining control over grant decisions, subject to applicable requirements and restrictions. |
What are the Main Benefits?
Immediate Tax Deduction:
- Certain charitable contributions may qualify for an income-tax deduction, subject to IRS rules, valuation requirements, and applicable deduction limitations.
- Proactively plan when to itemize deductions to maximize the tax benefits from your donations.
Tax-Advantaged Growth:
- Foundation assets may be invested for long-term charitable purposes, subject to applicable taxes and private-foundation investment rules.
Estate Tax Benefits:
- Charitable contributions may reduce the value of assets included in your taxable estate and potentially reduce estate taxes.
Tax Strategies:
- Contributing certain appreciated assets to a private foundation may allow the donor to avoid recognizing capital gain on the contribution, although special deduction and valuation rules may apply.
- “Bunching” charitable contributions into certain years may increase the tax benefit of itemizing deductions, depending on the donor’s circumstances.
*Tax treatment depends on individual circumstances and applicable tax law.
Updated: 8/29/2026
To Learn More About Endowment Wealth Management
and Our Fee-Only Fiduciary Advice
Call: (920) 785-6010
Visit: www.EndowmentWM.com
Align your wealth with what matters to you through a personalized financial strategy centered on your goals, priorities, and legacy.
Disclosures: Information contained herein is intended for informational, illustrative and/or educational use only and not designed to be a recommendation for any specific investment product, strategy, plan feature or other purpose nor shall it be construed to be the provision of individualized investment, tax or legal advice. Endowment Wealth Management, Inc. (“EWM”) is not soliciting or recommending any action based on this material. This is neither an offer nor a solicitation to buy or sell securities in any state or jurisdiction where EWM is not registered, or notice filed and does not qualify for an exemption from such registration and notice filing requirements. Prior to making any investment or financial decisions, an investor should seek individualized advice from a personal financial, legal, tax and other professional advisors that consider all of the particular facts and circumstances of the investor’s own situation. All investments involve risk and potential loss of capital and, unless otherwise stated, are not insured or guaranteed. EWM is not a tax advisor. You should consult with a tax professional with respect to tax implications of private family foundations.
The information is based on sources believed to be reliable and is current as of the date of publication. Applicable laws, regulations, rules, and requirements are subject to change. Reliance upon any information in this material is at the sole discretion of the reader. Content is subject to change without notice.
The potential benefits, limitations, costs, tax consequences, and suitability of any charitable-giving strategy depend on an individual’s unique circumstances and applicable laws. Before taking any action, individuals should consult with their financial advisor, attorney, tax professional, and other qualified advisors regarding their specific situation.
Endowment Wealth Management, Inc. (“EWM”) is registered as an investment adviser with the SEC. Registration does not imply a certain level of skill or training. See hyperlinks at the bottom of this page for Form ADV and Form CRS disclosure documents.
NAPFA registration is not an endorsement of EWM’s services.