Transcript

You’ve likely supported charitable causes in one way or another. But have you ever considered having a more formal philanthropic strategy in place? Perhaps you’d like to educate and get the next generation involved?

If so, your family may want to consider setting up a charitable foundation. This could be a public or private foundation, depending on your needs.

Both options let you make contributions and receive tax receipts. Both will also accept gifts of cash, publicly listed securities, mutual funds and life insurance—some of which have tax benefits associated with them.

The capital in your foundation will be invested in a balanced approach, and grants are disbursed over time to charities you and/or your family are connected to.

With a public foundation—or a “donor-advised fund”—all administration and reporting will be taken care of, giving you the option of being anonymous; whereas, with a private foundation, you are required to be responsible for fund administration and releasing annual reports to the public.

If you’re looking to be actively involved in your philanthropic activities, then a private foundation could be the right option for you. If you want the tax and legacy benefits that a charitable foundation offers—with less administration—then consider a public foundation.