Family Foundations

The Council on Foundations defines a family foundation as one whose funds are derived from members of a single family, though this is not a legal term and has no precise definition. The Council on Foundations suggests that family foundations have at least one family member serving as an officer or board member of the foundation and, as the donor, that individual (or a relative) must play a significant role in governing and/or managing the foundation. Most family foundations are run by family members who serve as trustees or directors on a voluntary basis. In many cases, second- and third-generation descendants of the original donors manage the foundation.

Family foundations make up over half of all private (family, corporate, independent, and operating) foundations, or 40,456 out of approximately 73,764 foundations (Foundation Center, 2011). Family foundations make up approximately one-third of the Council’s membership.

Family foundations range in asset size from a few hundred thousand dollars to more than $1 billion. The holdings of family foundations total approximately $294 billion, or about 44 percent of all foundation holdings of $662 billion. Despite this, three out of five family foundations hold assets of less than $1 million. Family foundations gave away approximately $21.3 billion in grants in 2011 (The Foundation Center, 2011).

Below is everything on our site for family foundations. You can use the filtering options on the right to narrow these results.

Sample formal policy on records retention and destruction for board approval.

This sample document is being provided for informational purposes and is not to be shared without the permission of the Council on Foundations. Use of the sample document does not create an attorney-client relationship, and the information provided is not a substitute for expert legal, tax or other professional advice tailored to your specific circumstances. The information may not be relied upon for the purposes of avoiding any penalties that may be imposed under the Internal Revenue Code.

 

Sample internal policies and proceedures for grantmaking due diligence. 

This sample document is being provided for informational and is not to be shared without the permission of the Council on Foundations. Use of the sample document does not create an attorney-client relationship, and the information provided is not a substitute for expert legal, tax or other professional advice tailored to your specific circumstances. The information may not be relied upon for the purposes of avoiding any penalties that may be imposed under the Internal Revenue Code.

Sample nondiscrimination policy for hiring, internal promotions, training, opportunities for advancement, and terminations.

 

These sample bylaws and articles of incorporation are not a model to copy; rather they are provided purely to illustrate what such a document might look like. Each state will have its own form or particular requirements to follow, which may differ from state to state. 

For other examples and for an in-depth legal view of foundation formation, please see Creating a Charitable Foundation: Formation and Considerations.

Editable whistleblower policies that establish procedures to prevent or detect and correct improper activities, encourage each Foundation director, officer, employee and volunteer to report what he or she in good faith believes to be a material violation of law, ensure the receipt, documentation, retention of records, and resolution of reports received, and protect reporting individuals from retaliatory action.

The CDFI Fund has identified over 41,000 population census tracts that are eligible for designation as a QOZ, including (1) 31,680 population census tracts that are Low-Income Communities (LICs) eligible for designation as QOZs; and (2) 9,453 non-LIC population census tracts that are eligible for designation if a particular LIC contiguous to the non-LIC tract is designated as a QOZ. Contiguous Tracts must be at or below 125% of the area median income.

Now that Opportunity Zones have been designated, individual and corporate investors are then given the opportunity to defer capital gains taxes when they reinvest the earnings in these communities. Additional incentives accrue over five, seven and ten years if the investment is maintained – thereby promoting the kind of patient capital that distressed communities so often lack. Get more of the resources you need to learn about Opportunity Zones from the US Impact Investing Alliance.

The OZ program is intended to spur long-term investments in low-income census tracts in the U.S. The new law allows investors to place unrealized capital gains (a profit from an investment that hasn’t yet been sold) into authorized O Funds that invest capital into OZs. The greatest benefits would go to investors who invest for 10 or more years. Learn more from the Mission Investors Exchange about the benefits, risks, and potential of opportunity zones.

With the creation of the federal Opportunity Zones incentive program, trillions of dollars in new private investment will flow into pre-designated low-income communities around the country. But will this investment benefit the people living in these communities now, or will they be displaced as new interest and development brings increased property values and rents? And what kind of development will result —unsustainable, car-dependent sprawl (the dominant growth paradigm in the United States today) or walkable, mixed-use communities with a variety of housing options for everyone?

Treasury and IRS have issued an initial set of proposed regulations and guidance on how the Qualified Opportunity Zone tax benefits under IRC 1400Z-2 (including the certification of Qualified Opportunity Funds and eligible investments in Qualified Opportunity Zones) will be administered.