February 10, 2014

Family Foundations Let the Affluent Leave a Legacy

From the New York Times:

According to the most recent statistics, the number of family foundations like the Cordes Foundation has exploded since 2001. There are now over 40,000 family foundations in the United States, making grants totaling more than $21.3 billion a year, up from about 3,200 family foundations doling out $6.8 billion in 2001, according to the Foundation Center in Washington.

These nonprofits are on the upswing for several reasons. First, friendly tax breaks make the charitable vehicle appealing. And it offers philanthropists who want more control over their giving a way to give with fewer restrictions than would come with a donor-advised fund or writing a check to an established charity.

Then, too, there is often an underlying desire for baby boomers to instill in their children the significance of giving and compassion for those less privileged. A family foundation can curb a sense of entitlement that may come along with inheriting wealth.

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