Is Establishing a Private Foundation Right For You?

Are you considering starting a Private Foundation or a Family Foundation?

Are you interested in setting aside family or personal funds toward a charitable purpose?

Do you want to create a philanthropic family legacy while maximizing independence and maintaining greater control over donations and asset management?

If any of these apply to you, a Private Foundation may be an ideal formation for your organization.

What is a Private Foundation

Technically, every organization that meets IRS criteria for tax exemption in section 501(c)3 is a private foundation, unless it meets specifically excluded definitions like hospitals, universities and other publicly supported organizations.

Private Foundations are not-for-profit entities that can be controlled by a person, family or business. Sometimes private foundations are referred to as ‘family foundations’. They are organized exclusively for charitable, educational, religious, scientific and literary purposes under Section 501(c)(3) of the IRS Code. The foundation must be officially recognized by the IRS in order for contributions to it to be tax deductible. In practice, a private foundation is a unique planned giving vehicle that fosters family involvement, provides significant control over assets and giving, and allows donors to receive an immediate tax deduction for charitable donations that are made in the future.

Benefits of a Private Foundation

Family Legacy: A private foundation allows you to establish a legacy of giving that can carry your family name and support causes that are important to you, promoting charitable activities into the future.
Control: Private foundations provide the greatest control over charitable donations and investments. You decide which charities to support, how the assets are managed, and the types of assets you can donate.
Family Involvement: A private foundation enables family members to participate in philanthropy, fostering a culture of giving and passing on values related to charitable work to future generations.
Current Tax Deduction for Future Grants: You can take an immediate tax deduction for contributed assets, even if the foundation does not make charitable grants until a later date. This also allows you to remove taxable assets from your estate without incurring capital gains taxes.
Structured Giving Programs: Private foundations can create structured giving programs, such as scholarships or specific project funding, tailored to the founder’s philanthropic goals.
Flexibility in Funding: Founders can contribute a wide variety of assets to fund the foundation, including stocks, real estate, and other investments, providing flexibility in how the foundation is financed.
Long-Term Impact: By establishing a private foundation, you can make a long-term impact on the causes you care about, ensuring that your philanthropic efforts continue even after your lifetime.

These benefits make private foundations an attractive option for individuals and families looking to engage in philanthropy while enjoying control and tax advantages.

Representatives from our firm will work with you throughout the process from incorporation to obtaining tax exempt status. We will help you start and set-up your youth nonprofit by preparing your Articles of Incorporation, Bylaws, 1023 application for tax-exempt status, along with any needed state filings to become a successful and organized 501c3 tax-exempt Private Foundation.

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On Friday, February 6, 2016, Mr. Thomas Wrobel of T.S. Wrobel & Associates – Attorneys at Law, emailed a memo stating that the Stanislaus County Veteran Employment Committee (VEC) was officially considered a non-profit entity and can now conduct efforts to further the interest of the VEC. It was due to the professional efforts of T.S. Wrobel & Associates that ensured that the Stanislaus VEC was now official. The board of directors of Stanislaus VEC and the members at large wish to thank T.S. Wrobel for their assistance and attention to detail. Now the Stanislaus County Veteran Employment Committee will be able to assist veterans to pursue their chosen careers and enjoy the fruits of their labors. With all this in mind, we would recommend T.S. Wrobel to other groups seeking to pursue the non-profit status.

Henry J. Timothy, Secretary, Stanislaus County Veteran Employment Committee

Henry J. Timothy

Thomas S. Wrobel of T.S. Wrobel & Associates was very helpful and efficient in guiding me through the process of creating a simple will, power of attorney and health care directive.

Paul Corbani, August 25, 2017

Thank you Tom Wrobel and your excellent team. You have provided us with professional service, much needed support and patient guidance in our effort to reinstate our foundation’s non profit status. This was a complicated process and at every bump in the road you were there! You have our sincere appreciation as we celebrate your expertise and success in achieving our tax exempt status.

Susan Opsvig, Board President, Codornices Foundation, Berkeley, California

Susan Opsvig

Thank you. I received the letter from the IRS. This is great news. I am very appreciative of all the help that you provided during this process. Throughout the process I had a strong sense of confidence knowing that the Nonprofit Legal Center team is so successful in acquiring tax-exempt status for its clients. Once again you came through. Thank you very much.

Clarence Caldwell, Founder, The Roots Foundation, Rancho Mirage, CA

Clarence Caldwell

What seems to be a very complicated process to a layman, which certainly requires technical knowhow and understanding of the tax code, there is no doubt your firm made things easier for us in this application.

Joey Pamaran Tugung, CWCP, CRMS, De Basilan World Foundation Cupertino, CA

Joey Pamaran Tugung

It is with deep appreciation and gratitude that we now can say that the c3: Center for Conscious Creativity is an official public charity 501(c)(3)! Thank you for all your support and professional guidance. You have been nothing but utterly fantastic throughout this process. We will cite you and recommend your business without hesitation. Thank you, again for all your help and support!

Kate McCallum, Founder, c3: Center for Conscious Creativity, Los Angeles, CA

Kate McCallum

Thomas Worbel and Associates have been a great asset to my organization. I paid by fees to TW&A but was unable to complete the required paperwork due to various reasons for an extended period of time. Years later, they not only helped me complete all applications, but finished and we received our non-profit status in record time. I have known Thomas for several years, and he and his staff have always been totally professional and helpful in all my needs. I highly recommend his services as his business has helped me and many other non-profits to remain up and running to IRS standards, in addition to offering additional services. A better service to start your 501c3 organization cannot be found.

Art Brockmeyer, Founder-Board President, The Berkeley Saxophone Quartet Foundation Berkeley, CA

Art Brockmeyer

Thomas Wrobel, helped out our foundation, when we were needing someone to quickly execute our non-profit status that had been attended to incorrectly. Thomas is caring, has incredible knowledge and a very efficient staff. We at GrantAngelWishesandTravel.org highly recommend his work and company for your next project. We are excited to be certified a 5013c and to continue to work with Thomas Wrobel & Associates.

Lyle & Julie-Ann Forcum, Co-Chairs & Co-Founders, Grant Angel Wishes And Travel Foundation (TM)

Lyle & Julie-Ann Forcum