What are the benefits to the donor of establishing a private foundation?
A foundation provides the greatest degree of flexibility, control and perpetuity of any charitable vehicle and allows the donor to maintain control over both the investment and distribution of its assets. A private foundation perpetuates the donor’s generosity and charitable interests for as long as it exists because it is required to spend only a part of its annual investment returns each year. The corpus may be preserved, which enables the foundation to give away many times the value of the founding gift over time. The foundation becomes an enduring means for a family to pass its philanthropic interests and values down through succeeding generations.
