A private family foundation can have many benefits. And yes, the tax savings can be substantial and are probably at the top of your list. Yet there is an even more important issue you must consider before making the decision to start your own. Read on to discover how to make your foundation truly rewarding.

It’s a very bad idea to walk into creating your foundation blindly. Instead, spend some careful thought on your long-term goals for the foundation and the commitment that will be required both of you and your entire family. And then, there are all those administrative requirements. Make sure you’re really ready by spending time on the most important issue of all.

Choose the right goals

In order to ensure that you’re ready to stick with your foundation for the long haul, you have to make sure that you choose the right goals. Those goals must be truly yours — and they need to have staying power. It’s essential to get really clear about what you want from your foundation.

What happens if you don’t? The number one problem I’ve seen with people setting up foundations is that many of them neglect that crucial step and focus strictly on the immediate tax benefits, which can be substantial. Unfortunately, that can easily get in the way of developing a real philanthropic program. Read the rest of this entry »

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