Aug 1, 2010 12:00 PM

Grant Making Isn't the Only Way

Donor-led and family foundations use creative alternatives to charitable giving

Despite the economic recession, private foundations (PFs) led by individual donors and by families continue to form, grow and increase their grant making — in one way or another. Indeed, a recent analysis of the giving patterns of 700 Foundation Source clients revealed a nearly 15 percent increase in the number and value of grants of less than $1 million made in 2009. This runs counter to trends among large institutional PFs that have decreased their giving in the face of the economic downturn.1 It also suggests that PFs remain extremely popular as vehicles for charitable giving, particularly smaller PFs that are governed by individuals or families. (See “Foundation Giving 2008-2009,” p. 36.)

There are many reasons for the continuing popularity of PFs, including donor control over grants and investments, the ability of a family to work together toward a common philanthropic mission and using the PF as a means to transmit personal values over generations. Another reason frequently overlooked is the remarkable flexibility that only PFs afford their donors for creative giving with tax-privileged assets.

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2010 Tax Act News Industry Trends Surveys

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