The tax laws applicable to private foundations are some of the most complex in the tax code. Such laws contain many traps for the unwary, paired with draconian penalties for sometimes even inadvertent noncompliance. It is important for private foundations and the individuals that manage them to seek appropriate advice in navigating this minefield.
We have significant experience assisting clients and their families with establishing and maintaining private foundations. We routinely prepare governing documents, file the initial application for tax-exempt status with the IRS, advise on state and federal compliance issues, serve as general counsel to assist board members and trustees tasked with managing the foundation, and assist with the termination of foundations that have outlived their usefulness.
We also counsel clients regarding whether a private foundation makes sense in their particular situation, or whether another charitable planning vehicle (such as a donor-advised fund or a charitable remainder trust) might better accomplish their particular goals and objectives.