Foundation Establishment & Management
“We make a living by what we get, but we make a life by what we give”
Winston Churchill
These following questions are designed to help tailor our discussion on the potential foundation establishment process.
What is the primary purpose of the foundation you wish to establish?
What specific causes or charitable missions will your foundation support?
Will the foundation primarily provide grants to other organizations or operate its own programs?
How do you plan to fund the foundation initially?
Will the foundation seek ongoing public donations, or will it rely on an individual, family, or corporation donations for funding?
If a private foundation is the option you choose, is the plan to establish an endowment? If yes, what is the estimated initial amount?
If a public foundation is the option, do you anticipate receiving at least 33 1/3% of your funding from public sources (e.g., individuals, corporations, government grants)?
Who will be responsible for managing and overseeing the foundation?
Do you have a board of directors or trustees in mind?
There are certain governance rules that will need to be considered to comply with this IRS regulations. Will you need guidance on structuring governance to comply with IRS regulations?
Where will the foundation be incorporated?
Will the foundation engage in lobbying or advocacy efforts?
For private foundations, are you aware of the 5% minimum distribution requirement for grants and charitable activities?
Will the foundation award grants to other nonprofits, individuals, or both?
If awarding grants to individuals (e.g., scholarships), there are IRS pre-approval requirements that will need to be met.
What criteria will be used to determine grant recipients?
- What is your vision for the foundation over the next 5 – 10 years?
- Do you have a strategy for sustaining the foundation’s funding and operations long-term?
- If the plan is to grow the foundation, have you investigated best options for growth and also to broaden the impact the foundation will have?
