From arts and culture to disaster relief, local foundations set up by individuals and families do enormous good. We discuss the ins and outs of building a foundation with Helen Stephens, president and CEO of Aspen Wealth Management, based in Fort Worth.
Larry Light: One of the most important pillars of our society is the benefits provided by public charities and philanthropic foundations. Do you find that many philanthropically minded folks who have a deep commitment to giving back to society are uncertain about how to get started?
Helen Stephens: Yes, they have the resources, the desire and the commitment to build a legacy that will make a difference in their community, but they aren’t sure about the first steps. Certainly, there is much to consider when launching such an organization.
Light: What are the initial decisions that need to be made to get a philanthropic organization started on the right foot?
Stephens: The first step is to organize and register as the correct 501(c)3 organization type. Notice that I said, “the correct type,” because there is more than one.
Light: What are the different organization options?
Stephens: You need to consider the following question: Should your organization be a true private foundation or a public charity? Organizations primarily funded through the gifts of a particular individual, enterprise or family, will often serve the founders’ vision better if organized as a private foundation. A good example is the Bill and Melinda Gates Foundation, which is funded mostly by the Microsoft
MSFT
Light: Sounds like, in terms of registration and legal structures, the source of funding and the means of fundraising for your foundation is key.
Stephens: Exactly. A public charity must typically be…
Read the full article here
