How to Establish a Private Foundation
Establishing a FamilyFoundation at The San Diego Foundation involves a similar process to opening any other type of fund. Whether you are transferring your foundation from an external entity or establishing a new family foundation, you have many of the same options to consider and choices to make. We are here to make this process as simple and flexible as possible, to ensure your needs are being met and your passions served as effectively as possible.
As an individual or with the participation of your whole family, you can choose a
fund type, which determines at what level you will be involved in the distribution of funds, a
fund classification, which determines how your funds will be distributed, and whether to support an ongoing cause or participate in a special project.
Five Easy Steps to Opening a Fund at The San Diego Foundation
1. Decide When to Give
Give now or in the future. You can open a fund with a current gift, or provide a lasting legacy through your will or estate plan.
2. Decide What to Give
Almost any kind of asset can be used to start your fund, including cash, securities, life insurance, real estate or private foundation assets.
3. Name Your Fund
Most funds are named for the donor or the donor’s family as a memorial to someone special. You may also choose to use the word foundation in your name. Grants from your fund will carry the fund name unless you wish to remain anonymous.
4. Decide How to Give
An endowment is a permanent fund. The principal is invested and never spent, earning income that provides endless support for the causes or organizations for which you are passionate. A non-endowment fund distributes grants from both the principal and the interest earned, so it is not a permanent fund.
5. Choose Your Fund Type
You can choose from a variety of fund types, depending on the degree of involvement you desire and the number and types of charitable grants you wish to make. Examples include donor advised funds, common good funds and scholarship funds.