Starting a Private Foundation: What it is + Steps to Start

[@AmberMelanieSmith]

You definitely want to check out this webinar - tinyurl.com/4ydkyj7f - from my friends at Foundation Source - whether you want to learn more about starting a private foundation, are someone who helps nonprofit foundations get started, or are a nonprofit who wants to learn about getting funding for your cause!

[@mervinejasmine4866]

The site isn't opening

[@AmberMelanieSmith]

@@mervinejasmine4866 Hmm I tested the link and it worked for me, does the page not load?

[@EdUdell]

Someone may be giving a huge amount of money to continue the character work of my mother who has passed on. Her work was based largely on the work her father did to improve the lives of people and community Wherever he lives in the several states where he lived. . And his work came from some work of his father we also work to make life better for individuals. My sister has two daughters that have good jobs and they want to continue the legacy of my mom because her work has helped them and some of their friends and they’ve seen the work She’s done with other people and they want that work to continue through me and others. Thank you so much for sharing such a wonderful outline so my sister, her daughters and myself can take care of these steps, and we can also work with the Foundation Source.

[@johnteqonlinetv2940]

I'm intending to start my own Foundation and that's I came to listen for this video. Thank you 🙏

[@AmberMelanieSmith]

Welcome to the channel! :)

[@tommalsman4185]

This has me thinking about new options. Just in time too, I was about to commit to a direction that may have some new support and actions with this new information. Thanks, Kid!

[@AmberMelanieSmith]

You got this!

[@Disaster7122]

@@AmberMelanieSmith I am really needing help trying to get the word out there to people. Social media just doesn't work it's for a family

[@gugumpanza3665]

Thank you so much 🙏🏼, I hope it works the same here in South Africa.

[@AmberMelanieSmith]

Thanks for watching, I hope it was helpful!

[@Berachahmovies]

Thank you so much,so impactful

[@AmberMelanieSmith]

Glad to hear it!

[@vgree]

This is exactly what I was looking for. Thank you so much. -loyal subscriber

[@AmberMelanieSmith]

Yay!

[@vgree]

Could you do a video on Donor Advised Funds? thanks@@AmberMelanieSmith

[@AmberMelanieSmith]

@@vgree Do you have specific questions about DAFs, or just a general overview?

[@vgree]

Just a general overview. I guess my more specific question is can it be created in terms of not having to set up a brokerage account through something like fidelity or can it just be created on it’s on and the donations and investments can be distributed without a broker.

[@Marshall-c6y]

I TRULY ENJOYED THE INFO. SO INTERESTING AND EDUCATIONAL 😊😊😊😊

[@AmberMelanieSmith]

Glad you enjoyed it!

[@nightrunner1456]

Great and right to the point!

[@AmberMelanieSmith]

Glad it was helpful! :)

[@missnette444]

Excellent video, and extremely useful information.

[@AmberMelanieSmith]

Thanks for watching!

[@latashilassiter6190]

Thank you you’re great !

[@AmberMelanieSmith]

Glad it helped!

[@timothyg100]

Thanks ,this is what I needed to know more about . I think it is the fit for my plans. Amber I know you are anxious to hear back from your listeners with some real results from your help,,,,stay tuned you are helping more than you know. Cheers

[@AmberMelanieSmith]

Thank you for watching! :)

[@Ibetala]

Thank you so much for this information

[@AmberMelanieSmith]

You're so welcome!

[@AiSmileSupport]

You are truly a blessin! I believe this is the route for me! Very informative video 🙌🏾 I still have a few questions though, do u offer one on one consulting? Also if I choose to incorporate a Private Operating Foundation, do I have to put the word foundation in my name or am I able to put the word Organization in it instead?

[@AmberMelanieSmith]

Hey there, I sometimes do consulting. You can name it what you want. :)

[@Robinjhon2024]

A Best Private Foundation 👍

[@AmberMelanieSmith]

Hope the video was helpful!

[@CobraHooks-iy5fe]

thanks for the information, super helpful :)

[@AmberMelanieSmith]

Glad it was helpful!

[@peaceekong4269]

Thank you, for the information.

[@AmberMelanieSmith]

Any time!

[@davidcolgan5803]

Could you do a video on how you allocate and spread the money out to support your calls? Like who determines how much and where the money actually goes.

[@AmberMelanieSmith]

That's a good topic! Did you already watch my video "How to decide which charity to donate to?" It may answer some of that too.

[@rolandka]

Very interesting and helpful❤​@@AmberMelanieSmith

[@nanaessel858]

outstanding presentation. Thank you

[@AmberMelanieSmith]

Glad you liked it!

[@philipkloska4930]

Amber I'm reaching out to you because you got the best plan and the best concept of what to do I am needing assistance I am a veteran and I'm 52 years old but there's a foundation I want to start up but I'm starting at like ground zero and I love to get your feedback and info from you and maybe a little assistance from you Philip klaska

[@AmberMelanieSmith]

Thanks for your kind words :) If you're thinking private foundation is your route, FoundationSource (video sponsor) is a good resource! Or if you were thinking public charity, that's different and my other videos may be helpful! Here's the Starting a Nonprofit playlist: kzbin.info/aero/PL-JB-jNZz_qDxws4QHsZFIwn0T9jZFgYK

[@YaGirlOutside]

I'm starting a non profit to raise funds through community enrichment events and want to create a grant and scholarship program to plug those funds into vocational education in my rural community back home, do I need to set up a completely separate non profit for the scholarship aspect??? or can I simply connect with the high schools and community colleges back home, create criteria and disburse all through 1 org? I don't need to set up two orgs do I? Thanks!

[@AmberMelanieSmith]

You should be able to give out scholarships under your one 501c3 as long as the scholarships are directly related to your charitable mission (and not random).

[@YaGirlOutside]

@@AmberMelanieSmithYou’re wonderful! Thank you for taking the time to answer my question.

[@JacquelineTorres-fw6bw]

This was great. Thank you. Do you need to have a set amount of money to begin the foundation?

[@AmberMelanieSmith]

Other than the set up costs, I think that would be something you'd talk through with your financial adviser!

[@AlyssaKohuth]

I really want to help single moms and start something I'm just still not 100% sure how to get started. I know this is my calling though.

[@AmberMelanieSmith]

A great place to start is always market research! I'd gather several representatives of the population you want to serve (single moms) and just ask them about their lives and biggest challenges!

[@DevenPeterson-gq2xq]

Big Love ❤️

[@AmberMelanieSmith]

😊

[@tifabella]

Thank you Amber! That was very helpful. I had a question about the Board of directors in a private family foundation. Can the Board members benefit from a monthly salary for running the foundation, or should it be a volunteer based job like other nonprofits??

[@AmberMelanieSmith]

In general board member compensation is not typical. Public charities and private foundations board members can hire someone and pay them a salary to manage the organization. Since Private Family Foundations get their funds from their own family (and don't ask for public donations), there may be situations in which private foundation board members could be compensated for reimbursements or routine service within reason but I recommend talking to a lawyer for nuances.

[@saveusjesus9430]

Hello, I want to know that if someone or some organization who can support pastors to look after their church in other countries like in asia .thank you

[@AmberMelanieSmith]

Not sure! I'd reach out to the Foundation Source folks directly

[@saveusjesus9430]

Thank's a lot Amber I highly appreciate .God Bless You.

[@micomarinas2753]

what are some of the countries that a person/entity establish a family foundation or corporate foundation but not from the home country in order to avoid political harassment or from dictatorship? can an entity put the foundation under a LLC or asset trust?

[@AmberMelanieSmith]

Those nuances I'm not sure about. The Foundation Source folks may be able to weigh in on that.

[@christopherdupremd8897]

How do you fund a private foundation ? Does the family place post tax or pre tax money into the foundations account??

[@AmberMelanieSmith]

It's usually post-tax, just like donating to any other charity.

[@oritsegbemietuwewe5673]

Hello Mel, I just stumbled to to video on starting an NGO. I hv strong passion for the illiterate and poverty and how to stamp or alleviate these monsters in society. How can I begin?

[@AmberMelanieSmith]

Start with market research and your business plan! Create your theory on what solutions will effectively combat that issue, then get community feedback to test the theory!

[@bodejoseph9613]

What is the different between the public foundation and the private foundation?

[@AmberMelanieSmith]

Do you mean a public charity and private foundation? I cover some differences in the video, but in a public charity you are governed by a board elected from the community and can accept public donations; private donations can be governed by family/partners but cannot accept tax deductible public donations.

[@gto9073]

Amber, just watched this informative video. If I purchase property, in Panama, and place title in a Private Foundation in Panama, is the Foundation treated the same, as if it was in the US? Would I still need to file a 501c3 here in the US? Or is it considered a Panama Foundation, subject to their rules?

[@AmberMelanieSmith]

Hey there, I'm not a legal expert and I'm not familiar with rules outside the USA but I'd say talk to an attorney!

[@averagemillennialinvestor]

Hi Amber, does Foundation Source help every step of the way from step 1 thru 8?

[@AmberMelanieSmith]

I believe so, yes.

[@averagemillennialinvestor]

I reached out but it seems their minimum is 250k which is way too high for what I have in mind. Do you have any recommendations on who to contact to start a small private/public foundation? @@AmberMelanieSmith

[@uduakudoffia9274]

Hi Amber. This is awesome and helpful! I have a question if you can answer with some ideas. My sister started a familt foundation last year to provide food for poor people in Africa, How do we go about soliciting grants to help expand to more areas? Currently we are surviving from friends and family donations to support 2-3 events per year. Please advise. Thank you.

[@AmberMelanieSmith]

Is it a private family foundation? If so, it probably cannot receive charitable grants. Public charities can receive tax-exempt public donations. Private family foundations are typically structured to be funded by the family that started them.

[@uduakudoffia9274]

@AmberMelanieSmith Hi Amber. It's a public foundation she registered with IRS as a 501C non-profit organization.

[@AmberMelanieSmith]

@@uduakudoffia9274 Gotcha - in that case, you want this video instead! :) kzbin.info/www/bejne/qZ6sl4eafslgasU

[@uduakudoffia9274]

@@AmberMelanieSmith Thank you very much!

[@justicenoapart]

how much money is required to start a private and public foundation?

[@AmberMelanieSmith]

There will be filing fees of course (a few hundred to a few thousand depending on if you work with an attorney) but then how much you invest in it is variable.

[@davidcolgan5803]

Cause

[@AmberMelanieSmith]

Gotcha

[@wompol7117]

want a private operating foundation as well as a trust.

[@AmberMelanieSmith]

Cool!

[@WilliePurnell-lb2ie]

Charity navigator

[@AmberMelanieSmith]

A helpful resource to be sure.

[@rsr458]

Hi there can I want to create a private foundation but can it be possible to create one that still advertises to the public in order to generate an endowment made up of many peoples investements into the foundation?

[@AmberMelanieSmith]

Hey there! I talk about this in the video, but private foundations are designed to be funded by a family/company (vs solicit public donations, which would not be tax deductible to a private foundation). If you start a public charity, that structure is designed to request public donations.

[@rsr458]

@@AmberMelanieSmith no but by investments I mean that they still own that money but it is held within the foundation so it’s not a donation, but then is this concept still known as a foundation

[@jayparikh1664]

Can I contribute to a family foundation from my IRA account? I am 68 years old.

[@AmberMelanieSmith]

I'm not an accountant (so definitely talk to one!) but it sounds like IRA owners age 70+ can do a Qualified Charitable Distribution that might achieve this?

[@afshinmofid858]

Thank you. This was helpful. Is there a fee to start a foundation?

[@AmberMelanieSmith]

Getting the legal status you need will require a fee for state and federal registrations at a minimum. If you hire a laywer to help with the paperwork, there's that cost too.

[@afshinmofid858]

Thank you. So you don't need hundreds of thousands of dollars to start a family foundation but only the registration cost and the attorney cost for preparation. Is that correct? My dad was a playwright and I want to start a foundation under his name to preserve his work and help younger actors that want to perform his plays. Not a money maker and I don't have any money to give an endowment to this foundation. Should I look into some other form of doing that? Thanks again for your help.

[@AmberMelanieSmith]

@@afshinmofid858 Well, there's no legal minimum, but you do need enough to grant out by law (private foundations give out money). This may help: www.investopedia.com/articles/pf/12/private-foundation-start-up.asp

[@afshinmofid858]

Thank you. I appreciate your help.

[@richardgongora1142]

So does that mean a private foundation cannot get funding from the public at all

[@AmberMelanieSmith]

So, technically it can but there are some special rules. This article is helpful. www.foley.com/insights/publications/2019/08/can-private-foundation-contributions-from-others/

[@bluecreek6036]

I think if I win the lottery I'll be giving you a call

[@AmberMelanieSmith]

Ha ha, awesome

[@thintalk5280]

Too much, too fast. I can't understand what you are talking about. It needs more clarity, please.

[@AmberMelanieSmith]

Oh no! So sorry - did you have a specific question I can help answer?

[@delarafarms]

Mutual benefit corporation

[@AmberMelanieSmith]

What about them specifically?

[@kizitoemmanuel1187]

Hi, I would like to get a marketing expect but can you help me. am also your follower on Twitter. Thanks

[@AmberMelanieSmith]

Hey there, can you clarify your question?

[@kizitoemmanuel1187]

@@AmberMelanieSmith I made a mistake but l was meaning that I would like to get a marketing expert. can you help me.