PRIVATE FOUNDATION SERVICES

Creating a private foundation can be an exhilarating experience for an individual or family. It is a public affirmation of their philanthropic spirit and a commitment to support worthy charitable activities.

While a private foundation can be a great vehicle for charitable giving, in some cases, the process of managing the foundation's affairs can diminish the joy of giving or even become too burdensome to maintain. Silicon Valley Community Foundation offers a range of services to simplify the process and bring the focus and joy back to giving.

For philanthropists with private foundations, Silicon Valley Community Foundation offers a range of options, including:

• Option 1: Convert the foundation into a named fund at Silicon Valley Community Foundation.
  
• Option 2: Donate the foundation's annual 5% required payout into a named advised fund at Silicon Valley Community Foundation, a public charity. The payout will be distributed within 12 months.
  
• Option 3: Donate the foundation's annual 5% required payout (or any amount desired) to Silicon Valley Community Foundation, to be distributed through the community foundation's community grants program.
  

Option 1: Converting a private foundation into a named fund at Silicon Valley Community Foundation.

Over time private foundations can be affected in a variety of ways:

• Your original purpose may no longer apply, or you need to update your philanthropic mission to meet changing community needs
• Financial factors -- such as rising operational and investment management costs -- may make it difficult for your private foundation to serve effectively and may be draining funds from your charitable purpose.
• It is difficult to keep up with new and changing government regulations.
• It is difficult to meet the annual 5% payout requirement.
• The founder may prefer that his or her family focus on philanthropy, rather than on the foundation's investments and administration.

In any of these scenarios, Silicon Valley Community Foundation may be the most sensible alternative. By transferring one's private foundation to the community foundation, an individual or family can be assured that intelligent grantmaking will continue in their name for decades to come. Whether an individual chooses a named advised fund or a supporting organization, the benefits will be the same – reduced administrative burden, maximized charitable giving and the assurance that your charitable vision will go on as intended.

The Termination Process
The following is a summary of the necessary steps to convert a private foundation into a named advised fund at Silicon Valley Community Foundation:

1. Establish a fund at the community foundation to which the foundation's assets will be distributed.
2. Submit a letter to the state Attorney General's office requesting a waiver of objections to the transfer of assets.
3. Submit a petition to the Superior Court requesting approval of the termination.

Silicon Valley Community Foundation can facilitate all of the necessary legal and administrative steps for you.

Option 2: Donate your annual 5% payout into a donor advised fund at Silicon Valley Community Foundation

On occasion, the trustees of a private foundation may have difficulty meeting the annual 5% payout requirement. Silicon Valley Community Foundation can assist by accepting contributions from a private foundation's annual payout. The payout can be placed in a donor advised fund at the community foundation and distributed to charity within 12 months.

Because the private foundation's contribution to Silicon Valley Community Foundation is a "qualifying distribution," it counts towards the 5% payout. The private foundation makes one grant (issuing just one check), and Silicon Valley Community Foundation then disburses grants to qualified agencies based on recommendations from the fund advisor.

Option 3: Support the community through Silicon Valley Community Foundation's unrestricted grantmaking funds.

Private foundations that work with Silicon Valley Community Foundation benefit from our experience and permanence, while also benefiting from the flexibility and expert grantmaking services the partnership can provide.

A private foundation can meet all or part of its annual payout requirement by supporting Silicon Valley Community Foundation's community endowment, one of Silicon Valley Community Foundation's community initiatives, or a field of interest fund focused on a particular cause such as education, the environment or the arts. Contributing to the community foundation's unrestricted grantmaking funds helps support our region's most outstanding and effective nonprofit programs.

Contact us to learn more about our private foundation services and which options make the most sense for you.