IS A PRIVATE 
FOUNDATION RIGHT 
FOR YOU?

Philanthropy is one of the most meaningful ways individuals and families can define what they stand for and carry their values forward. And one of the most structured ways to engage in long-term giving is through a private foundation, which allows donors greater control over donations, the opportunity to create a legacy as a family, and organized, systemic giving. Indeed, foundation philanthropy continues to expand, with annual foundation giving exceeding $100 billion in recent years.1

 

Starting and maintaining a private foundation, however, is not a decision to take lightly. Foundations come with legal responsibilities, tax considerations, governance requirements and financial commitments that can be complex to navigate.

 

Download the report to read answers to the 10 most critical questions for determining whether a private foundation could be right for you.

  • What are the primary tax advantages of a private foundation? 
  • What assets should be used to fund the foundation?
  • What is the threshold for funding it? 
  • How can my family be involved in the foundation?
  • What are the privacy considerations?

How We Can Help

Northern Trust has been supporting private foundations for generations, handling all aspects of management. We provide back-office support; oversee administrative functions such as accounting, recordkeeping and investment management; and provide an online platform for tracking grants, donations and investment performance. Additionally, Northern Trust’s team of philanthropic advisors can facilitate family discussions, help you clarify goals, articulate a mission, and align your philanthropic activities with your values. 

  1. https://givingusa.org/giving-usa-2025-u-s-charitable-giving-grew-to-592-50-billion-in-2024-lifted-by-stock-market-gains/

DOWNLOAD THE REPORT

Private foundations offer both advantages and complexities. Read answers to the 10 most critical questions. 

© Northern Trust Corporation. Head Office: 50 South La Salle Street, Chicago, IL 60603. Incorporated with limited liability in the U.S. Member FDIC. This information is not intended to be and should not be treated as legal, investment, accounting or tax advice and is for informational purposes only. Readers, including professionals, should under no circumstances rely upon this information as a substitute for their own research or for obtaining specific legal, accounting or tax advice from their own counsel. All information discussed herein is current only as of the date appearing in this material and is subject to change at any time without notice. The information contained herein, including any information regarding specific investment products or strategies, is provided for informational and/or illustrative purposes only, and is not intended to be and should not be construed as an offer, solicitation or recommendation with respect to any investment transaction, product or strategy. Past performance is no guarantee of future results. All material has been obtained from sources believed to be reliable, but its accuracy, completeness and interpretation cannot be guaranteed.