Creating a Family Legacy
Building a Giving Strategy

Under current law, irrevocable contributions of cash or securities to the ACGFund are immediately tax-deductible and allow donors to:

• Recommend grants from the fund to charitable organizations at any time
• Select how funds will be allocated among the available investment options
• Plan charitable giving over time, supporting interests of importance to the donor and his or her family
• Name a successor to continue a family tradition and recommend future grants and asset allocation changes
• Make a tax-deductible gift and decide on a charitable recipient later

Creating a Family Legacy

A giving strategy is a reflection of the donor’s charitable interests, budget, and personal approach to philanthropy. Family philanthropy provides an opportunity for parents to pass on their values to the next generation. Children have an opportunity to learn from an early age that giving back to their communities is an important endeavor. Giving also offers the opportunity to create a family legacy, ensuring that important values extend beyond parents’ lifetimes.

• With Donor Advised Funds, donors can create a named charitable fund (e.g., The Smith Family Fund) without the expense and ongoing reporting obligations of a private foundation
• Many families use this tool to involve children and grandchildren in charitable giving
• The family can sustain this charitable endeavor far into the future by making additional gifts to the fund and supporting the charities of their choice

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Building a Giving Strategy

Designing a giving strategy involves contemplating a donor’s mission and goals and his or her family’s philanthropic aspirations. Donors should think about what kind of giving program suits them and their family. Who will be involved in the grant making? How much time can one spend on philanthropic decision-making? Donors may also want to consider the following questions for outlining grant making strategies and parameters:

• What kind of organizations will be funded?
• What kinds of grants will be given: program grants, general operating grants, matching grants, program-related investments?
• Will all of the grants be required to relate to the family’s mission, or will other grants be considered?

Before embarking on a new philanthropic venture, participating family members should discuss what the scope and intent of giving will be. For families with a well-established history of charitable giving, this process will be a natural outgrowth of philanthropic goals they are already pursuing. If a family is already giving in support of a specific cause, creating a mission statement may be as simple as writing a few lines defining the parameters of that commitment. For others, though, discovering their philanthropic passion may involve more contemplation.

Once a mission has been identified, a mission statement for the family philanthropy should be created. Although there is no legal requirement mandating a mission statement, many families find them to be invaluable tools for setting their giving agenda and curtailing or preventing conflict over grant making decisions.

• In crafting a mission statement, it may be helpful to consider these questions:
• How likely are the charitable objectives to evolve over time?
• To what extent are these objectives something that children or other successors will want to pursue?
• What are the chances that a particular purpose may one day become obsolete or unnecessary?
• How well has funding been matched with purpose? Too little money? Too much?

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For further information, please contact:

Richard B. MacKinnon
Senior Vice President
Boston Private Bank & Trust Company
Ten Post Office Square
Boston, Massachusetts 02109
Telephone: 617-912-4287
Click Here to send an inquiry via email

Advisors Charitable Gift Fund is recognized by the Internal Revenue Service as a public charity under IRS Code Section 501(c)(3). Therefore, donations to the fund are irrevocable charitable gifts when made and cannot be returned. Please consult your attorney, tax advisor, or other appropriate advisor before changing or implementing any financial or tax strategy.

Investments are not FDIC insured, are not a deposit, have no bank guarantee, and may lose value.