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PRIVATE FOUNDATION SERVICES
Silicon Valley Community Foundation is a great resource for your private
foundation. We are a flexible, low-cost institution with current assets of $1.7 billion and more
than 1,500 philanthropic funds under management. We specialize in working with individuals and
families to achieve their philanthropic goals.
A private foundation can be a great vehicle for charitable giving, but sometimes
the process of managing the foundation's affairs can diminish the joy of giving or become a burden
to maintain.
Has your private foundation been affected by any of these factors?
- The original purpose no longer applies or the philanthropic mission needs to be updated to meet
changing community needs.
- Rising operational and investment management costs.
- Keeping up with new and changing government regulations, such as the 2006 Pension Protection Act
or the 2001 Patriot Act, requires too much of your time.
- It is difficult to meet the annual 5% payout requirement.
- The founder prefers that the family focus on philanthropy, rather than on investments and administration.
In any of these scenarios, Silicon Valley Community Foundation may be the best alternative.
We offer several options:
- Option 1: Convert the foundation into a named advised fund.
- Option 2: Donate the foundation's annual 5% required payout to an advised
fund at Silicon Valley Community Foundation (to be distributed within 12 months) OR to our Community
Endowment Fund (to be distributed through our grantmaking strategies)
- Option 3: Take advantage of our new Customized Philanthropy Services program.
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Option 1: Converting a private foundation into a
named advised fund.
Rollover your private foundation into a named advised fund or supporting organization,
and let our experienced staff help you achieve your charitable goals. Your new named advised fund can maintain
the same name, identity and charitable goals. Continue your charitable giving without the burdensome
administrative costs, IRS requirements, compliance regulations and excise tax payments associated with
a private foundation.
Silicon Valley Community Foundation can facilitate all the necessary legal and
administrative steps for you. Those steps include:
- Establishing a fund at the community foundation to which the foundation's assets will be distributed.
- Submitting a letter to the state Attorney General's office requesting a waiver of objections to
the transfer of assets.
- Submitting a petition to the Superior Court requesting approval of the termination.
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Option 2: Donate the annual 5% payout into a donor
advised fund OR to our Community Endowment Fund to be distributed through our grantmaking strategies.
If you have trouble meeting your private foundation's annual 5% payout requirement,
the community foundation can assist by accepting contributions from this payout. Because the private
foundation's contribution to Silicon Valley Community Foundation is a "qualifying distribution," it
counts toward the 5% payout.
The 5% payout can be placed in a donor advised fund and distributed to charity
within 12 months. The private foundation makes one grant, and Silicon Valley Community Foundation then
disburses grants to qualified agencies based on your recommendations.
You can also give your 5% payout to our Community Endowment Fund, allowing our
expert grantmaking staff to determine which outstanding and effective local nonprofits will receive funding.
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Option 3: Take advantage of our new Customized
Philanthropy Services program.
Private foundations, corporations, individual philanthropists and nonprofits can
take advantage of our Customized Philanthropy Services. We offer guidance on the art and science of giving
effectively and provide full-service support for your administrative needs. Our professional, dedicated
staff can help you accomplish your giving goals - from due diligence on an international nonprofit to
managing your foundation's investments.
Choose from our Menu of Services, which includes
grantmaking, finance, accounting, back-office support and investment management services.
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