The fastest growing way to give
I thought having a charitable foundation was the domain only of the super rich but not any more. It happens to the be the fastest growing method of giving and I suspect it’s going to skyrocket in popularity as the economy recovers, portfolios go positive and boomers once again focus on their next phase.
So yes, a totally self-directed foundation is still out of reach for many of us but individual or family foundations (sometimes called donor-advised funds) are now a packaged offering available through financial services firms. A similar offering is also available through many foundations. Start it up with $10k-$25k depending on the program.
Your name is on the foundation, you can direct where the proceeds go, you may select how the funds are invested and the perk on top of all the good feeling you get is that there’s a big tax deduction that comes with the investment.
Get the kids involved
Some families are using it as a way to involve kids in the giving process. It’s a family fund and the family decides together where proceeds go.
When you’re ready to think about this you’ll know it
When you’ve taken care of yourself, your partner, and your kids, and there will be a time when that happens, if there’s a little extra leftover then maybe it’s time to think about setting up your own foundation. It will add structure to your giving and even leave a legacy that continues to give even when you’re gone.