Advisers Should Seek Private Foundations as Clients

Advisers should not overlook private foundations as potential clients. These foundations are usually set up by affluent people and can last for several generations, so advisers can add an entire affluent family to their client base.

Private foundations are just private 501(c) charities, and are funded by private donors – usually affluent donors. Affluent donors prefer to form their own foundations instead of giving to a public charity because it affords them more control of their donation. Founders can pursue their charitable goals while also receiving many benefits that they would receive from other businesses including salaries and other tax-leveraged benefits.

Services that private foundations might need include: life insurance, casualty and health insurance, retirement-plan services, annuities to grow wealth in a protected manner, cash and asset management and investment services. Because private foundations are overlooked, advisers should take advantage of the foundations’ need for the aforementioned services. 

See Roccy DeFrancesco, Attract Affluent Clients with Private Foundations, ProducersWeb.com, Jan. 27, 2011. 

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.