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 8 of 10)
How important is it to you to employ specific people (i.e., family members or others) as paid staff or paid board members through your charitable vehicle?

It is critical that I have the option of compensating members of my family as paid staff or paid board members.1

I would like to employ specific people as paid staff who are not members of my family.

I would like some extra help with some aspects of my giving, but do not necessarily want to employ specific people for that support.

It is not important for me to employ specific people as paid staff or board members.

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. (0813-5646)

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