Many families find that the creation of a private foundation bearing their name is an excellent option for leveraging their resources. A foundation recognizes and carries out the charitable goals of the family while providing the children with a philanthropic vehicle to do good works in the community of their choosing. While the administrative, taxation and regulatory compliance is burdensome, many families feel the rewards far outweigh the responsibilities.
Fletcher Tilton offers many services to support foundation administration, including: operate as the Foundation’s office to receive grant requests and respond; manage all correspondence, email and telephone inquiries and maintain a web site, if desired; prepare agendas and background documentation for Trustee meetings; attend Trustee meetings, take minutes, and compute annual amounts to be distributed under IRS rules.
We also can prepare guidelines for grant seekers, process all grant applications as well as grant checks, prepare all IRS and state tax returns, handle audits if necessary, and assist in the management of the assets held in the Foundation’s endowment fund.
For a professionally managed fund of $3,000,000 in marketable securities, where a large brokerage house acts as custodian, Fletcher Tilton reviews monthly statements and report to the Trustees; maintains and reconciles the foundation’s checking account; disburses grant checks to organizations as directed by the Trustees; prepares necessary federal and state income tax returns, obtains Trustees’ signatures, and files returns.
A trustee-managed fund, where one of three trustees is a Fletcher Tilton attorney, consists of $25,000,000 in marketable securities. Housed in Fletcher Tilton’s Trust Department, the fund has all trades, income receipts, and other details handled electronically through the DTC trust system.
A foundation’s endowment fund, with $2,000,000 of marketable securities managed by a retail stock brokerage firm, distributes about $100,000 per year with each of three families directing one-third of the grants. Fletcher Tilton’s attorneys carry out each family’s grant directions, keep the books, manage all correspondence and prepare and file the foundation’s tax returns.