Private Foundation Services

A valuable partner for your foundation

Private foundations offer many benefits, but they have strict requirements and administrative demands that can become overwhelming. We work closely with the trustees and advisors of private foundations to manage those demands by creating customized service agreements that meet their unique needs.

If your private foundation has been affected by any of these factors, TFEC can help.

  • Preference to focus on charitable giving rather than investments and administration
  • Rising operational and investment management costs
  • Keeping up with new and changing government regulations
  • Difficulty in meeting the annual 5% payout requirement

We offer the following services for private foundations to assist them in their administrative responsibilities:

Option 1: Management Service Agreement
Through a Management Service Agreement, TFEC can support your charitable administrative, investment, and grantmaking needs.

Administrative Services:
Services offered include single-fund accounting, journal entries, audit preparation, assistance with budget development, financial reporting, grant processing, HR services, and legal counsel for trustees and their attorneys. The private foundation remains the legal owner of its assets.

Investment Services:
Participate in TFEC’s investment models, or recommend own investment selections. TFEC’s Investment Advisory Committee provides periodic investment reviews if invested through TFEC’s investment models. If desired, maintain existing bank/broker relationships and keep investments within chosen custodial institutions.

Grantmaking Services:
TFEC’s experienced staff receives grant proposals, prepares materials for grant decision meetings, and processes disbursements and evaluations in line with your current process. TFEC can assist with a grantmaking plan for proactive approaches and increased impact and make grant recommendations if desired.

Scholarship Services:
TFEC’s experienced staff receives scholarship applications, prepares materials for scholarship decision meetings, and processes disbursements and evaluations in line with your current process. TFEC can assist with a scholarship plan for proactive approaches and increased impact and make scholarship recommendations if desired.

Option 2: Establish a Committee Advised Fund
Through establishment of a Committee Advised Fund, you can transfer your annual required payout as a “qualified distribution” because TFEC is a nonprofit organization.

  • Distribute annual 5% spending requirement into fund for future grant making at will.
  • Reduce excise taxes with additional qualified distributions into fund.
  • Allow fund to accumulate assets, or spend down as desired.
  • Maintain anonymity of grants, if desired.
  • Make supplemental disbursements from fund to level peaks and valleys in grant making.
  • Use TFEC’s Donor Central online service to review fund balances and recommend grants at any time.
Option 3: Dissolution of Private Foundation and Conversion to a Named Fund
Convert your private foundation into a named Committee Advised Fund with TFEC. Your fund can maintain the same name, identity, and charitable goals as your foundation. Continue your charitable giving without the burdensome administrative costs, IRS requirements, compliance regulations, and excise tax payments associated with a private foundation. We can assist you to facilitate all the necessary legal and administrative steps.

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Could your foundation benefit from TFEC’s services?

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