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You are no stranger to the world of philanthropy. You have been asked to lend your name, your time, and your financial support
to a number of charitable causes. Educational institutions, churches, hospitals, museums, orchestras, and other organizations
have probably benefited from your generosity. Perhaps you serve on boards of directors or advisory councils for some of these
charities. And you are constantly solicited by groups that want your help in combating various diseases, constructing new
buildings, or saving animals from extinction.
Yet, despite your interest in the public good, you may never have seriously considered starting a private foundation. Many
people who are interested in the well-being of their communities, and who are committed to expressing this interest in a
creative and orderly way, find that a private foundation is one way to meet these goals. You could be among them.
Should you consider starting a private foundation? You should, if you meet one or more of the following criteria:
- You wish to leave a lasting imprint on society while making a significant difference, or you desire to perpetuate a certain viewpoint or philosophy.
- You are searching for a form of giving that can unite family members around a purposeful mission.
- Your annual giving is significant and you would like to be more strategic about the causes you support and how you support them.
- You would like to create a protective buffer between you and those asking for your financial support.
- You have significant or anticipate significant assets you can use to launch and/or endow a private foundation.
- Your giving has become complex and unwieldy, and it requires administrative support.
- You feel a responsibility or a desire to be leader in your community.
- You would like to avail yourself of the considerable tax advantages.
Quite simply, you should consider starting a private foundation because it's engaging, exciting, and fun. Giving to and
through a private foundation can give your wealth meaning, and enlist you and those you love as stewards in the betterment of
society.
Don't let yourself be discouraged by a lack of knowledge concerning the day-to-day operations of a private foundation. This
booklet outlines the process of philanthropic grantmaking and suggests ongoing sources of help for new grantmakers.
You might feel that a private foundation is out of reach financially for you or your family. If so, this booklet can help you
decide whether a private foundation is a realistic option
Perhaps you have questions about the federal and state regulations governing private foundations, and the tax benefits to
private foundation donors. If so, read on: this booklet describes—in non-technical language-the legal climate in which
private foundations operate, and it summarizes the tax benefits and limitations that private foundations offer donors.
By starting your own private foundation, you are participating in a great American tradition that has literally changed the
face of this country. A former president once remarked that he couldn't think of one major movement for good in this country
that had not been initiated by private resources. That pattern should be continued in our society, with the private sector
leading the way for us and for those who will come after us.
There are far more needs in our country than will ever be met. More private foundations with vision and commitment are sorely
needed. If you are considering establishing a private foundation, we urge you to pursue that interest.
But do not begin with a concern for financial or legal matters. Begin with an examination of your own desire to accomplish
good. If you wish to change the course of things, to follow through with your impulses for good, to invest your energy and
skill in alleviating suffering, advancing knowledge, and enlarging opportunities, then use this booklet to help you gain
insight into how a private foundation can help accomplish those purposes.
While not a legal textbook, an estate planning document, or a manual for foundation operation, this booklet provides a
valuable framework for planning. We invite you to read on and to consider joining us in this endeavor.
Robert Hull, for the Forum of Regional Associations of Grantmakers Summer 1999
This booklet was originally published in 1980 by the Southeastern Council of Foundations.
Reprinted with permission from the Forum of Regional Associations of
Grantmakers
©2003 Indiana Grantmakers Alliance, Inc.
32 East Washington Street, Suite 1100
Indianapolis, Indiana, 46204
Phone: (317) 630-5200 | Fax: (317) 630-5210
Email: info@indianagrantmakers.org
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