Passing Down a Private Foundation

If you have a private foundation, it is time to think about who might run it after your death.  The best advice for donors and heirs is to start planning.

A private foundation is a lot like a family business: the business owner is so busy with the business; the succession planning is pushed off for another day.  Below are some tips for an easier transition:

• Clarify your mandate.  A mission statement for your foundation can spell out your values and guiding principles.  You can decide how strict to make it, or whether you want to let future trustees into areas you may be unaware.
• Consider family dynamics.  Not every family member wants to be involved.  Test this out by giving individuals responsibilities while the founder is still alive.  This way the founder has guided and educated the potential successor and can see if he or she is a good fit. 
• Bring in experts.  Be open to outside help.  Being flexible enough to pull in the right people at the right time can help with strategies.
• Make connections.  You can enrich your work by making connections with other philanthropists.  This is true for original donors as well as heirs who take over the foundation.

See Ashlea Ebeling, Do’s And Don’ts of Passing Down A Private Foundation, Forbes, Feb. 11, 2015.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.