The costs of establishing and running a private foundation can be overwhelming. Traditionally, assets in excess of $5 million are needed before the private foundation becomes a cost effective alternative.

As a community foundation, The Youngstown Foundation provides donors with all the functionality of a private foundation, but with significant economic and administrative advantages.

The advantages of working with The Youngstown Foundation are:

Help for Private Foundations
It is easy to become overwhelmed with responsibilities of grantmaking, legal and administrative requirements, and fiduciary work when you have a Private Foundation. Take advantage of the benefits of working through The Youngstown Foundation and alleviate these challenges.

• Contributions to The Youngstown Foundation:
  Private Foundation Trustees often have difficulty deciding on a sufficient number of grants in order to meet the annual 5% payout requirement.
  
  Contributions from a Private Foundation to The Youngstown Foundation are qualifying contributions that satisfy their minimum distribution requirements.
  
  Grants from Private Foundations to Community Foundations are not “taxable” expenditures and not subject to expenditure responsibility requirements. Therefore, a Private Foundation may establish a Donor Advised Fund and meet its distribution requirements while enjoying the advantages of being a part of The Youngstown Foundation.

Private Foundations Challenges:
Over time, Private Foundations develop the following concerns:

• The original purpose of the foundation no longer has the urgency it once did.
• As operating costs increase and government regulations multiply, financial factors make it difficult for the foundation to operate effectively.
• The foundation’s board has lost members through resignation and death, and has found it difficult to attract new members.
• Future generations will not continue to fulfill the founder’s charitable interests.
• The founder desires that his/her children focus on the family’s philanthropy, not on the Foundation’s investments and administration.
• Requirements and responsibilities of a Private Foundation become too time consuming.

Transfer Private Foundation Assets to The Youngstown Foundation:

• Follow The Youngstown Foundation’s simple process to establish a Donor Advised Fund with the same distribution criteria as the Private Foundation.
• Work with The Youngstown Foundation to appoint an advisory committee that will carry out the grant review processes, previously carried out by the Board of the Private Foundation.
• Transfer the assets of the Private Foundation to the Donor Advised Fund. Once assets are transferred the fund becomes active and grants can be awarded.
• At the end of the fiscal year of the Private Foundation, submit a final 990 to the IRS, informing them that the Private Foundation has ceased operation with zero assets.

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