If a private foundation is right for you, then Ren can get you started. We’ll help you determine if your goals are suited towards an operating or non-operating private foundation.
Operating foundations are directly involved in operating a charitable project or enterprise such as a museum, zoo, or library in a continuing and sustaining manner. Rather than making grants to other organizations, they spend the majority portion of their investment income on their own charitable projects.
Non-operating foundations don’t usually run their own programs, but instead give back by making grants to public charities, individuals, and organizations. Non-operating foundations are required to make an annual distribution equal to roughly 5% of their prior year’s average net investment assets. Distributions that count toward this requirement include grants to charities, certain related expenses, and, with the exception of investment expenses, necessary and reasonable administrative costs.
While private foundations offer a large degree of control for their donors, they require heavy involvement in the foundation’s granting strategy. As a donor, you will need to help operate the foundation, including hiring staff and investment managers, managing grantmaking, and fulfilling all reporting requirements.
Ren can help you initiate the process of establishing the foundation, file for tax-exempt status, make the initial contribution of assets and manage other required administrative documents.