PRIVATE FOUNDATIONS

Private foundations find it beneficial to partner with Blue Grass Community Foundation to leverage our infrastructure and expertise in charitable giving. Having access to our knowledgeable staff helps them with the vital yet time-consuming tasks of managing a foundation. Our personalized services include grants administration, tax reporting, and legal compliance and investment management. Private foundations may also appreciate the enhanced flexibility of timing regarding their required annual grantmaking dollars by establishing a charitable fund.

Private foundations can become aligned with the Community Foundation in several ways:

CONVERTING A PRIVATE FOUNDATION INTO A DONOR ADVISED FUND

When you convert your private foundation into a donor advised charitable fund, your new fund can keep the same name, identity and mission. You can continue to support the causes important to the foundation, without the burdensome administrative costs, IRS disclosure requirements, complex regulations and excise tax payments associated with a private foundation. 

Advantages of converting a private foundation to a donor advised funds.

ESTABLISHING A DONOR ADVISED FUND TO HOLD THE FOUNDATION'S
5% PAYOUT

Private foundations are required to grant 5% of their assets every year. Many private foundations have trouble meeting this requirement, resulting in grants being made to meet the 5% requirement rather than to achieve strategic giving goals. When you establish a donor advised charitable fund, your private foundation can make a qualifying distribution to the fund to meet the 5% requirement. Then, you make grants from your charitable fund when the timing is right for you within the following twelve months, and we handle all of the grant processing.

Advantages of using a donor advised fund for your private foundation’s grantmaking activities.

CREATING A SUPPORTING ORGANIZATION

If you have complex giving goals, your private foundation can be converted into a supporting organization of the Community Foundation. A supporting organization maintains a separate board of directors, investment policy and charitable status. As part of the Community Foundation, supporting organizations are conferred public charity status, so all donations receive the maximum level of tax deductions. Get more information about supporting organizations.

UTILIZING THE CUSTOMIZED SERVICES OF THE COMMUNITY FOUNDATION 

Through our customized services, our professional staff offers you strategic grantmaking and philanthropic planning services, purpose and structure consultations, due diligence, and administration services crucial to day-to-day foundation work. A Memorandum of Understanding will be created between each client and the Community Foundation outlining specific services to be provided and the associated fees.

View a complete menu of services offered to private foundations.

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Email Us: info@bgcf.org  /  Call Us: 859.225.3343

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