Though tax and estate planning may influence the decision to start a family foundation, ultimately foundations are born from an individual or family decision to commit their wealth for a philanthropic purpose. While it is often the founders’ intention for the foundation to be a lasting philanthropic endeavor for future generations of the family, it is surprisingly uncommon for the founders to engage the next generation in foundation activities or even to clearly and meaningfully communicate their original vision.
Just like families plan for wealth transitions, foundations also require a well-thought-out succession plan. The intention of the founders and other family stakeholders needs to be clearly articulated or it will be left entirely up to interpretation of the governing documents by foundation trustees or the courts. To avoid the latter scenario, it’s important to proactively address the question: What is the future of our family foundation?
Here are five key considerations for families to prioritize to ensure the legacy of their foundation:
Leaders of the family foundation should bring stakeholders together to begin the conversation about succession planning. Whether the transition lies decades into the future or is just a few years ahead, careful planning can help smooth the transition from one generation the next.
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Trademarks and logos belong to their respective owners. BNY Mellon Wealth Management conducts business through various operating subsidiaries of The Bank of New York Mellon Corporation
BNY Mellon Wealth Management conducts business through various operating subsidiaries of The Bank of New York Mellon Corporation.
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