Family Foundations are the gold standard in charitable giving. Once the exclusive provence of the ultra wealthy, interest in this charitable giving vehicle has become widespread. Private foundations are generally founded by an individual, a family or a group of individuals, and are organized either as a nonprofit corporation or as a charitable trust.

Family foundations provide a number of powerful advantages:

  • Families can use the foundation to work toward common goals;
  • Foundations help instill the value of charitable giving in families;
  • Family members and Friends can be appointed to sit on the Board;
  • Donors can remain in control of the investment and management of the funds;
  • Donors can remain in control of the final charitable disposition of the donations;
  • With the exception of the 1-2% excise tax on net investment income, the investment income of a family foundation is exempt from income taxation;
  • Assets donated to a foundation are generally not subject to estate taxes; and
  • Grant making by the foundation can bring public recognition to the family’s philanthropy and keep the memory of a loved one alive.

What Services does your law firm provide?

We provide the following services when hired to establish Private Family Foundation:

  • Review your vision for the new family foundation;
  • Explain relevant tax advantages to you and the Board of Directors (or Trustees);
  • Explain record-keeping and IRS reporting requirements;
  • Work with you to formulate a plan for charitable giving;
  • Providing you with a written overview of 501(c)(3) tax-exempt status;
  • Provide you with a training session explaining what must be done to maintain your tax-exempt status;
  • Incorporating your Texas Foundation;
  • Drafting your foundations bylaws;
  • Drafting and filing the IRS Form 2848 Power of Attorney;
  • Drafting and filing the IRS exemption application – Form 1023, and related statements; and
  • Representing the foundation before the IRS and responding to IRS follow-up questions regarding your application;

How long will this process take?

We can prepare and file your application very quickly. However, the 501(c) application approval generally takes between 3-6 months. So, getting started right away is essential.

 Need Help?

If you would like more information about forming a family foundation or want to form a private family foundation, contact us today.

Call the Perliski Law Group at (214) 446-3934 for a free phone consultation to see how we can help. You can also contact us by filling out the online form on this page.