Schwab Charitable

Private Foundation Conversion

Is Converting Your Foundation to a Donor-Advised Fund Right For You?

This survey can help you determine if a donor-advised fund account makes sense for you. Whether you want to convert your private foundation to a donor-advised fund account or are considering one as a complement to your foundation, Schwab Charitable can help.

Family Involvement & Compensation (Question 7 of 10)
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Which of the following best describes your desired approach to involving your family in your philanthropy?

I would like my family to be involved in my philanthropy and would like to create an incentive for them to meet periodically to discuss family philanthropy, including covering reasonable expenses associated with these meetings from my charitable vehicle.

I would like family members to be involved, but do not want the obligation of board meetings and/or I do not want my charitable vehicle paying the expenses associated with such meetings.

I am unsure about whether to involve my family in my philanthropy.

I am not eager to involve family members and/or I'm worried that forcing interaction or agreement on grantmaking may create tension and be counter-productive.

considerations

The degree to which donors involve family members in their giving is an important consideration.


Private Foundations:
Private foundations provide the ability to offer family members (as well as others) paid positions within the foundation or positions as board members. In addition, the expenses associated with meetings can be covered by the foundation. Compensation and expenses are subject to strict IRS guidelines. Donors may also choose to have their children continue their charitable legacy by building a succession plan into the foundation's governing documents.
Donor-Advised Funds:
Donors and their family members may not receive compensation in connection with a donor-advised fund account, but they may involve family and friends in their philanthropy in other ways. Some donors designate family members or others as advisors on the account or name them as successor donor-advisors so that they may continue to recommend grants into the next generation. Others choose not to have family involved and instead recommend specific charitable beneficiaries to receive the full balance (or a portion) of the donor-advised fund account upon the donor's death. Some families meet to discuss the granting from their donor-advised fund account, but the expenses of such meetings are not paid by their donor-advised fund.
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Schwab Charitable does not provide specific individualized legal or tax advice. Please consult a qualified legal or tax advisor where such advice is necessary or appropriate.

Schwab Charitable is the name used for the combined programs and services of Schwab Charitable Fund, an independent nonprofit organization. Schwab Charitable Fund has entered into service agreements with certain affiliates of The Charles Schwab Corporation.

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