Establishing a Private Foundation
Jaqueline and Mark were executives at well-performing technology companies. They had a shared passion for charitable giving and wanted to not only see the impact of their donations within their lifetimes, but also instill the importance of giving in their daughter’s heart from a young age. While still working full-time, Jaqueline and Mark established a private foundation to which they frequently donated portions of their companies’ stock grants. As their corporate success continued, the foundation and its assets grew considerably in value.
Jaqueline and Mark were not acutely aware of the administrative complexities that now loomed within a foundation of this size. As they approached retirement, they knew that they wanted to maintain their focus on the foundation but as donors, not administrators.
Before coming to Bordeaux, Jaqueline and Mark worked with advisors who focused on managing the foundation’s investments but did little to coordinate with the CPA regarding the administrative responsibilities. As a result, the couple was responsible for bridging the meaningful gap between the CPA and advisors, which not only left them potentially exposed to administrative penalties but did not align with their retirement goals.
When Jaqueline and Mark brought the foundation to Bordeaux, they met with a team of advisors ready to maximize the foundation’s success, while helping the couple maintain their desired role as donors. Bordeaux’s team sought creative solutions to the administrative challenges that the significant foundation now faced.
Bordeaux’s advisors consulted with various attorneys to help educate the couple on private foundation tax laws. Bordeaux recommended that the couple redomicile the foundation, helping them find a state with laws that matched the foundation’s specific needs. Additionally, Bordeaux identified a team to take an operational lead, aiding the couple in the foundation’s operational responsibilities so they could focus on their role as donors.
Bordeaux’s experience and due diligence on the foundation’s goals and responsibilities served as an educational experience for Jaqueline and Mark, allowing them to understand what is required in maintaining a fully compliant private foundation. With this newfound understanding, Jaqueline and Mark were able to educate the next generation by not only teaching their daughter the importance of charitable giving but by passing down the knowledge she will one day need to run the foundation herself.
