Scott Thomas, ChFC®, CAP®, CKA®, RICP®

Private Foundation Quick Audit

Private Foundation Quick Audit

Recently I was driving and noticed a new model Supercar with crazy over the top performance.  Inside was a very mature woman and it’s highly unlikely she would ever drive the car as fast as her age.  I then thought about another conversation with a family regarding their Private Foundation. Between their bankers, trustees, legal and accounting fees they consume about 2.5% of the total corpus each year.  They only give to qualified charities and do not utilize the unique features of the private foundation.  Keeping the same name and reducing costs in half they could have superior performance and give more away or grow assets faster with a simple change.  At least the lady with the Supercar can enjoy the beautiful styling of the car.  The family maybe paying for Supercar and yet have the styling and performance of common family car. 

Many of those we consult that have a private foundation between $500,000 and $5,000,000 in assets are not getting all they can out of vehicle they purchased.  We can do one of three things to help them get more out of the decision they already made. 1) Educate the grantors about some of the unique features in giving only available to private foundations. 2) Help grantors find efficiencies in costs around legal, accounting, investments and administration. 3) If not utilizing the unique features then help them change the structure and keep the name and continue to give, but for greatly reduced costs annually.  We charge a flat fee $500 to provide a quick audit that often yields either expanded giving options or thousands a year in reduced fees and costs. Audit done by Chartered Advisor in Philanthropy.

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