A private foundation is a great way to capture income tax savings currently, while forming a pool of assets for charitable giving. This is not for everybody, and there are alternatives. But, for clients who are philanthropic and who have significant “excess” assets, high tax rates, and appreciated securities, the stars can align.
The following is a not a “legal” discussion of the detail, but rather a practical discussion of how it usually works to establish and run a private foundation. Our firm manages many foundations, both large and small, so we have perspective on the day-to-day / ongoing aspects.