September 4, 2003 | Read Time: 1 minute
Creating a Private Foundation: the Essential Guide for Donors and Their Advisers
by Roger D. Silk and James W. Lintott
By failing to take advantage of tax breaks when they finance foundations, philanthropists waste millions of dollars that could go to charity, write the authors. Roger D. Silk is chief executive officer and James W. Lintott is chairman of Sterling Foundation Management, in Reston, Va. They describe how to establish a private foundation and maximize the amount of money flowing to philanthropic causes.
The authors begin by explaining the advantages, disadvantages, and tax benefits of private foundations, donor-advised funds, and other charitable structures. Mr. Silk and Mr. Lintott say that private foundations are usually the best option when donors have large assets and want to maintain control over how the money is disbursed. To illustrate the financial benefits of establishing a foundation, the authors give hypothetical examples demonstrating that if philanthropists regularly contribute cash and stock to a foundation throughout their lives, money that would otherwise go to capital-gains, income, and estate taxes could be available for charitable purposes.
The book provides an overview of laws regulating foundations and gives advice on creating a mission statement, setting up a board of directors, and establishing an investment plan to increase the size of an endowment. It also discusses how to use matching grants and publicity to generate additional support for particular causes.
A list of useful books, magazines, and Web sites is also included, as is a guide to selecting foundation managers.
Publisher: Bloomberg Press, 100 Business Park Drive, P.O. Box 888, Princeton, N.J. 08542-0888; http://www.bloomberg.com/books; 224 pages; $50; I.S.B.N. 1-57660-136-6.
