Anonymous wrote:We have a private family foundation. It exists because of an estate tax strategy from two generations before me. The reason I mention it is that I don’t think people understand that in many cases when you see people giving from a family foundation, it’s not money that they ever had in their hands with the option to spend it on anything except donations to nonprofits. It might be funded by a CLAT or some other vehicle.
Imo it’s really different if you have $1m a year to allocate to various nonprofits vs having $1m in your own name and then deciding to give it to a nonprofit. That’s not to say that people don’t put “their own” money in family foundations or we can’t cheer or jeer them for what they decide to give to, it’s just a distinction that I don’t think people often know about unless they’re involved in one.
Exactly. We are in the same boat. If it were my own money, I think I would donate differently but we are lucky to have the option of supporting the school to the tune of several thousand a year while also supporting local charities we care about, thanks to a wise relative. There is also a stipulation that we are not to benefit from any gift we give from the foundation.