How Private Foundations Work
Families typically use a family foundation as a forum in which family members can work toward common goals, or as a way to instill the value of charitable giving in future generations of the family. Families may also choose to create their family foundation at a community foundation, such as The San Diego Foundation.
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. You can appoint yourself, as well as other family members or friends, to sit on the foundation’s governing board.
When a family foundation is established at The San Diego Foundation, donors are able to give to their passions while avoiding the administrative work of running their own private foundation. This is an excellent alternative to make a difference and gain visibility or anonymity while letting The Foundation handle the paperwork and overhead.
Once a private or family foundation is established at The San Diego Foundation, it operates in the same way as a fund. By establishing or transferring your foundation into a fund at The San Diego Foundation, you can be confident that your dollars are being invested strategically, your tax benefits are maximized, and your gifts will be distributed to important causes through effective grant making.
Learn more about the differences between a stand-alone private foundation and a family foundation at The San Diego Foundation.
Here is a visual that illustrates the process of transferring a private foundation into a family foundation at The San Diego Foundation: