As a leader within this sector, we have long been a part of these conversations, providing guidance and helping to summarize which giving approach(es) may be best based on one’s goals, values and passions. It’s important to note that choosing one approach to giving does not mean you can’t pursue the others or even use them together to maximize efforts.

For instance, working with more than 2,000 private foundation clients for over two decades, we’re in a unique position to witness the remarkable diversity of resources, personalities, interests and influences that exist in this vast melting pot of philanthropy. We have observed five common approaches to giving taken by private foundations in their quest to make a difference.

1. Checkbook Philanthropy: The simplest way to give. You write checks to your charities of choice, often at year-end in response to annual appeals or to help in a crisis or disaster. This type of giving doesn’t require evaluation or reporting from the recipient.

2. Strategic Philanthropy: With this proactive giving approach, you’re in the driver’s seat for determining the problems you want to address and how to solve them, rather than reactively supporting initiatives driven by a charity. This approach also involves robust reporting so you can measure your charitable impact. Ideas: Make grants and loans to charities, start a scholarship program, conduct research, or establish a food pantry.

3. Trust-Based Philanthropy: Giving in this way means you view your grantees as the charitable experts. You grant them unrestricted funding, trusting them to deploy your support most effectively. You’re also more transparent in your communication and you streamline your reporting requirements so grantees can focus on what’s really important – achieving charitable impact.

4. Venture Philanthropy: With this exciting and results-driven approach, you partner with your grantees as if they’re business startups seeking investment. Not only do you grant them funding, you work with them hands-on to tackle a challenging issue that may or may not be achievable. The risk is higher than other charitable pursuits but if successful, the reward is impactful.

5. Disruptive Philanthropy: Take this route when you want to shake up the status quo and tackle a longtime problem in a bold new way. It’s about questioning previous attempts to solve the problem and funding ambitious, high-risk efforts for a solution. Innovation, creativity and collaboration are key to this approach’s success.

In short, foundation giving can take many forms – and it can evolve over time as your goals and resources change.

Questions about your approach to giving?
We’d love to help! Schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.

The post Effective Altruism and Examining Different Approaches to Foundation Giving appeared first on Foundation Source.

For Donors

• Shaping Tomorrow: How Gen Z and Millennials View Charitable Giving
  Just in time for holiday gatherings, check out these next-gen insights and engagement strategies for foundations, advisors and nonprofits.
• Foundation Source Launches Season 2 of the ‘Be Giving’ Podcast
  Check out our new season and catch up on season 1 featuring compelling conversations about the biggest issues shaping the philanthropic sector.
• 5 Ways Giving and Wellness Are Connected
  While there are relationships between money and happiness, giving money away can actually play a role in overall wellness.
• All About Donor Collaboratives: What Are They and Why Launch One
  Donor collaboratives, or structured donor groups, highlight one major way that communities are harnessing their collective wisdom to pool charitable capital in alignment with their values and in pursuit of a common mission.

For Advisors

• Client Meeting Checklist
  Whether your client is considering a charitable vehicle or already has one, such as a private foundation, use these questions to help guide the discussion.
• Practical Tips to Integrate the Rational and Emotional Aspects of Philanthropy
  With the rise of holistic wealth management, advisors are extending their offerings beyond traditional investment expertise to get to know their clients on a more personal level.
• Three Key Opportunities for Families—And How You Can Better Support Them
  Over the past two decades, research conducted with family offices and wealthy families has revealed some meaningful trends. The historical context paints an interesting backdrop, but what does it mean for advisors today?

For Fundraisers

• Year-End Giving: Deciphering Gift Dates
  Ensure end-of-year gifts count for the current tax year with this primer on how to determine gift date.
• Year-End Marketing Ideas
  Mailing to donors before Thanksgiving can be an opportune time, especially for planned gifts—check out a few ideas our clients are employing.

Looking for other smart ways to give?
We have a full range of tech-enabled giving solutions for donor-advised funds, planned giving and charitable trusts. And with our philanthropic advisory services, our subject matter experts are there to guide you every step of the way.

Schedule a call or contact us at 800-839-0054 to get started now. Together, let’s #begiving.

The post Guide to the Giving Season 2024: Make Tax-Wise, Impactful Gifts Before Year End appeared first on Foundation Source.

Determining how philanthropic we are first requires a clear understanding of philanthropy. While there are many definitions, most include the following key elements:

• donation of substantial resources (primarily financial but also time and expertise) to a cause
• desire to further progress on a systemic issue and improve the welfare of others
• emphasis on providing sustainable support that aims to effect meaningful change

It also helps to differentiate “philanthropic” and “charitable.” Think long-term and strategic vs. short-term and emotional. Charity is often driven by a natural response to an immediate situation, such as donating to a hurricane relief effort, giving books to a library or making annual year-end donations to favorite causes. Philanthropy, on the other hand, is a more thoughtful and planned process that addresses the root cause of an issue to make a lasting, positive impact. For example, a donor aiming to support education determines through research that early childhood literacy is low. In response, they establish a program that provides books to children under the age of five to foster a love of reading.

So, consider how you’ve been giving to others. While both ways of giving are helpful and essential, it helps to understand your approach. For instance, if you’d classify yourself as “charitable” could you expand your giving to be more philanthropic with some planning? What are some long-term goals you’d like to achieve with your giving? What impact would you like to make? Thinking along these lines may change the way you want to give, including which charitable vehicle(s) you want to use.

2. What’s Your Philanthropic Personality?

In other words, what drives you to give? By understanding the root of your personal motivations, you can give more effectively and impactfully. To aid in this process, we’ve summarized the major donor segments that were introduced in The Seven Faces of Philanthropy. Which one best describes you? Are you a: Communitarian? Investor? Socialite? Repayer? Altruist? Dynast? Or are you Devout? To explore these personalities, visit here.

3. Do You Have a Giving Toolkit?

In working with our foundation clients, we often discuss the merits of giving in a variety of ways, from making grants to running direct charitable activities to impact investing through program- and mission-related loans, all of which and more donors can do with a private foundation. Having a flexible philanthropic toolkit can enable all donors – whether they have a foundation or not – to customize their giving to maximize charitable impact while enjoying greater tax savings and tax-free asset growth.

Optimal versatility can be achieved by using a mix of charitable vehicles such as donor-advised funds (DAFs) and planned giving tools like charitable remainder trusts and charitable gift annuities. For example, tremendous philanthropic and financial synergy can be achieved by giving through a private foundation as well as through a DAF. Whereas a private foundation offers more control over grants and almost limitless capabilities for giving, a DAF enables convenient, anonymous grantmaking.

4. Are You Open to Partnership?

While charities and nonprofits always appreciate donations, they also welcome opportunities to form meaningful partnerships with donors beyond the dollars. So, to be more philanthropic, consider collaborating with your chosen nonprofits to assess their needs and determine how you can help to address them. From skill-based expertise to network building and introductions, check out these ideas on ways you can offer meaningful support to your nonprofit partners.

Experimenting with a variety of approaches can also help you land on the unique combination that is best for you. We hope these questions help you reflect on your giving, so that this can be your most impactful giving season yet.

Want to learn more about giving?
Discover strategies for giving to different types of organizations here.

Have a Question?
Schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.

The post 4 Things to Consider If You Want to Be More Philanthropic This Giving Season appeared first on Foundation Source.

What’s Inside?

Our subject matter experts encourage us to look beyond the mechanics of giving and tap into the emotional and psychological benefits that true philanthropy can offer. It challenges us to think about why we give—what motivates us—and explores how we can create a giving experience that brings satisfaction, meaning and connection.

One of the key takeaways is the idea of giving with intention. Instead of giving because it’s expected or because a cause is trending, joyful giving is about aligning your gifts with your personal values and passions. When we give in a way that resonates deeply with our own sense of purpose, we’re more likely to feel connected to the cause and derive true fulfillment from the act.

Finding the Joy in Philanthropy

Philanthropy doesn’t have to be a heavy or burdensome obligation. When we give with authenticity and intention, giving becomes an expression of who we are. The joy in giving comes from the experience of knowing your contribution is making a real difference. By taking the time to understand the organizations we support—whether through direct involvement, learning about their work or engaging with those they help—we can create a more rewarding, personal relationship with our giving.

In practical terms, this could mean becoming a hands-on volunteer for a cause you care about, establishing a private foundation and/or setting up a donor-advised fund (DAF) to ensure your giving reflects your values over time. These approaches don’t just maximize the impact of your gifts—they enhance the joy and satisfaction you experience as a donor.

Giving as an Act of Connection

Another theme is the idea of giving as a tool for building connection. When we give to others, we are reminded of our shared humanity. Whether we’re supporting a local charity, funding scholarships for deserving students, or contributing to international relief efforts, our gifts foster relationships with others—both those who benefit from our generosity and those who share our commitment to positive change.

Far from being a solitary act, giving connects us to a larger community of like-minded individuals. It encourages us to seek out opportunities for collective giving and involvement, where we can collaborate with others to magnify the impact of our charitable actions.

Giving as Legacy

One of the most profound aspects of joyful giving is the sense of legacy it creates—and an opportunity to engage with your family on supporting causes you all care about. When you give with intention, you are not only impacting the present—you’re also shaping the future. Whether through establishing a foundation, starting a planned giving program or setting up a DAF, your philanthropic efforts can provide long-lasting benefits that endure for generations. By aligning your giving to your passions and values, you also ensure that your legacy reflects your life’s mission and purpose.

To dive deeper into these transformative ideas, download The Secret to Joyful Giving today and start exploring how you can elevate your own giving experience.

Have Questions This Giving Season?
We’re here to help! Schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.

The post The Secret to Joyful Giving: A Guide to Meaningful Philanthropy appeared first on Foundation Source.

#2 Strategic Philanthropy
With this proactive giving approach, you’re in the driver’s seat for determining the problems you want to address and how to solve them, rather than reactively supporting initiatives driven by a charity. This approach also involves robust reporting so you can measure your charitable impact. Ideas: Make grants and loans to charities, start a scholarship program, conduct research, or establish a food pantry.

#3 Trust-Based Philanthropy
Giving in this way means you view your grantees as the charitable experts. You grant them unrestricted funding, trusting them to deploy your support most e‡ectively. You’re also more
transparent in your communication and you streamline your reporting requirements so grantees can focus on what’s really important – achieving charitable impact.

Want more?
Check out the full infographic to see all the diverse ways private foundations can give.

Want to See Other Ways You Can Give Back with a Foundation?
From granting to individuals to direct charitable activities, foundations are a powerful charitable giving vehicle, allowing you so much versality—and the chance to be creative. Check out our white paper on the 10 Things You Didn’t Know You Could Do with Your Foundation.

Want to learn more about the ways we support philanthropists with private foundations?
Schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.

The post 5 Ways Private Foundations Can Give appeared first on Foundation Source.

1. only for the Ultra-High-Net-Worth
2. difficult and time-consuming to establish
3. burdensome to operate
4. expensive due to continual investment in staff and infrastructure

Today’s foundations benefit from advancements in technology as well as guidance and outsourcing from philanthropy experts like Foundation Source. These professionals can provide varying degrees of support according to one’s needs and philanthropic goals. They can work directly with an individual or family or can partner with financial advisors to help them provide charitable giving guidance to their clients. (A growing number of financial advisors are adding philanthropy expertise to their practice. They’re realizing it can help them engage more personally with their clients by addressing meaningful topics like family values, motivations for giving and how to establish a charitable legacy. These discussions help to provide more holistic financial advice.)

The private foundations of today are a whole new and exciting ball game – and a realistic charitable giving option for more people than one might expect. Let’s discover the truth about them by dispelling these five common myths.

Myth #1: You need at least $5 million to start a foundation.

Fact: Today more than 67% of all private foundations have less than $1 million in assets. While foundations’ administrative costs used to require initial funding of at least $5 million, it’s now practical to start a foundation with less than $1 million in assets, thanks to savings realized through online foundation management platforms such as our Impactfully platform and professional outsourced support and advisory services such as those provided by our Foundation Source experts.

Myth #2: Private foundations are time-consuming, difficult and expensive to set up.

Fact: With the help of philanthropic experts like Foundation Source, a private foundation can be established and operational in less than one week.

Simply put, a donor needs only to do three things to start a foundation:

1. determine a name for their foundation
2. complete a brief set-up questionnaire to denote who will fund the foundation and where its investment account will reside
3. fund the foundation to begin giving

Myth #3: Private foundations are a burden to operate.

Fact: With today’s technology solutions and expert guidance and outsourcing, running a foundation is much easier and more enjoyable than it was decades ago. For example, Foundation Source’s robust Impactfully platform offers a dynamic operational dashboard that helps foundations consolidate their operations and administration and efficiently manage their grantmaking. With it foundations can, for example, file their taxes; review their financial accounts; engage with their nonprofit partners, board members and staff; create, distribute and review grant applications; and measure the impact of their giving.

For additional support, foundations can turn to expert philanthropic advisors for guidance in myriad charitable giving issues such as developing a charitable focus or mission, running an effective board meeting or communicating with a grantee.

Myth #4: Private foundations require continual investment in staff and infrastructure.

Fact: Such an investment is optional, thanks to the flexible nature of foundations as well as outsourcing support. From a flexibility standpoint, when one starts a foundation, they can essentially do as much or as little with it as they wish, from simply making straightforward annual charitable donations to elaborately managing myriad philanthropic initiatives.

For donors who choose the latter and aim to do great things with their foundation but don’t want to hire staff and manage charitable programs, outsourcing from management solution providers like Foundation Source is available. These experts can serve as the foundation’s virtual staff or work in partnership with its founders and advisors. They can file taxes, monitor compliance; handle back-office responsibilities; and, in our case, provide the foundation with a purpose-built platform.

Myth #5: Only cash can be donated to a private foundation.

Fact: Private foundations can be funded with a wide variety of assets. And unlike other giving vehicles that often require liquidation of donated assets, private foundations can continue to hold them. This can be particularly advantageous if the assets are expected to continually increase in value. These assets could include:

• Publicly traded securities
• Alternative assets, including private equity and hedge funds
• Real estate
• Tangible assets (art, jewelry, collectibles)
• Intangible personal property (copyrights, patents, royalties)
• Life insurance and annuities
• Cryptocurrency

Running a private foundation can be one of life’s most rewarding experiences. And with the help of robust technology platforms and philanthropic experts who can assist with the legal, accounting and compliance requirements of private foundations, donors can focus on the deeply satisfying part of their giving – effecting positive change in the world.

Want to learn more about starting a private foundation?
Read about the benefits and considerations of a private foundation beyond tax savings.

Also be sure to subscribe to our blog so you don’t miss a beat!

Have a Question?
Schedule a call with us or reach us at 800-839-0054. Together, let’s #begiving.

The post Fact or Fiction: Setting the Record Straight About Private Foundations appeared first on Foundation Source.

Check out our white paper on some of the benefits conferred by using these two popular vehicles in tandem.

You don’t have to decide alone.
As you’re considering the best approach for your philanthropic journey, let one of our experts help guide you! Contact us here or call us at 800-839-0054—we’re here to help! Together, let’s #begiving.

The post 9 Unique Benefits of Private Foundations appeared first on Foundation Source.

Questions in the meantime?
We’re always happy to talk about your giving goals! Contact us or call us 800-839-0054. Together, let’s #begiving.

The post Digital Checklist: The Key Dates For Foundations Throughout the Year appeared first on Foundation Source.

Some view nonprofit organizations and grantmaking foundations as parties on opposites ends of the philanthropic equation, however they are really partners working toward the same goal. “Foundation and nonprofit partnerships benefit most from communicating clearly and early in the process,” said Alexis Fish, director of product marketing at Foundation Source. Being honest and upfront with what your organization needs can go a long way toward a lasting partnership, but speaking up can be challenging for a nonprofit organization. “A best practice is for a foundation to always include an open-ended question at the end of an application or discovery conversation that provides a dedicated place for a nonprofit to add in anything that they haven’t already had a chance to ask or say,” said Alexis.

“Grantmaking foundations are just people looking to do good,” said Kate Piatt Eckert, mission sustainability initiative director at Forefront. “Many foundations have dedicated program staff whose job is to help the foundation make grants. Contact them and ask what they are looking for and what they want to fund.”

“Consider starting with smaller foundations,” said Margaux Ancel, director of foundation engagement at Foundation Source. “Often times, grant writers will only spend time applying for larger grants because of the time and effort, but spending a little time on the smaller grants is a great way to get to know the foundation and build meaningful relationships.”

#2: Bridge the divide.

Funders often only see the broader view and lack insight into the work happening on the ground at nonprofits. The charitable giving space is often likened to a tree, with nonprofit organizations down at the roots and funders up in the branches. By offering a holistic description of an organization’s funding needs, foundations may not only express interest in contributing financial support but envision opportunities for a more substantive relationship. For example, Foundation Source client, Carrie Morgridge, actively bridges this divide by not only making financial donations, but also facilitating relationships.

“We don’t give money and walk away,” said Carrie. “Not only do you get a grant from our foundation, but we also roll up our sleeves and connect people in our network, from great nonprofits to great philanthropists. Because we’ve done so many grants and come across so many wonderful people, we’ve put together an amazing group, and we’ve organized them into sector categories in which they work. They’re sharing ideas and amplifying their capabilities just by connecting.”

#3: Utilize technology.

Long-lasting partnerships can be difficult to build and maintain, but technology can help maintain ongoing relationships and close communication gaps. For example, an online portal can offer space not only to complete an application, but also for a nonprofit to invite colleagues, track grants, payments, manage progress and view outcome reports in one place. These technology-enabled features can help nonprofits and foundations align in real time, allowing for a deeper connection. They also provide a great opportunity for nonprofits to showcase the impact of foundation commitments.

Christa Chu, a private client advisor at Foundation Source, shares her advice as a former fundraiser who now works with private foundations: “Nonprofits should demonstrate how the organization’s overall health is essential to the success of the program and frame a proposal that incorporates requests for both designated program funding and general operating support.”

Making an impact as a nonprofit organization while juggling multiple tasks is a challenging but possible feat with the right tactics and infrastructure in place. Frequent and transparent communication between foundations and nonprofits cultivate meaningful relationships that yield more than just financial support.

Ready to talk to a philanthropic specialist?
Schedule a call with us or reach us at 800.839.0054. Together, let’s #begiving.

The post 3 Ways Funders Can Deepen Their Relationships with Nonprofits appeared first on Foundation Source.

Still, for many private foundations, the declaration of a mission, a statement that specifically defines their charitable activities and intent, can prove immensely beneficial – especially when the mission evolves over time as foundations grow and gain philanthropic experience.

3 Benefits of Crafting a Mission Statement

A mission statement can help a foundation:

1. Focus its efforts and planning. As philanthropic causes are nearly endless, a mission can help foundations prioritize their initiatives and allocate resources efficiently.
2. Maximize its philanthropic impact. A mission can enable a foundation to track its impact over multiple cycles of grantmaking, which creates opportunities for learning and improvement.
3. Attract support and participation. With a mission statement that clearly defines its priorities, a foundation can more effectively attract and engage donors, grantees, volunteers and other outside stakeholders.

7 Tips for Mission Development
Ready to learn more? Check out our complete resource here.

Ready to talk to a philanthropic specialist?
Schedule a call with usreach us at 800-839-0054. Together, let’s #begiving.

The post 7 Tips For Crafting a Private Foundation’s Mission Statement appeared first on Foundation Source.