Financial Planning for Private Foundations

Private Foundations Financial Planning image for family business investment advisers McRae Capital Management.
Private foundations are independent legal entities set up for solely charitable purposes. Unlike a public charity, which relies on public fundraising to support its activities, the funding for a private foundation typically comes from a single individual, a family, or a corporation. Private foundations typically make grants to public charities, and receive tax deductions in recognition of their donations. Private foundations may be governed solely by the donor, or by a board consisting of family and friends of the donor.

The investment picture is a little different for these entities than for the general public, but McRae Capital Management has more than 35 years of experience working with private foundations. Here are some of our relevant areas of expertise:


  1. MCM can manage foundation assets, per an investment policy agreed upon between MCM and the board of trustees.
  2. MCM can manage cash availability, to ensure that annual cash needs for gifting are met.
  3. MCM can help develop a long term investment policy statement, so that a long term strategy can be implemented. (Trustee boards can change over time, and providing future boards with guidelines helps ensure smooth transitions.)
  4. MCM can work with foundation lawyers and accountants to help foundations meet their legal and tax reporting responsibilities.

If you are working with a private foundation and would like to hear more about how McRae Capital can help, please don’t hesitate to give us a call.
McRae Capital Management brings decades of long-term investing experience to bear for families, individuals, and corporate clients. If you have questions about anything, from general family budgeting to complex tax issues, from divorce to inheritance, from planning for college to planning for retirement and everything in between, just download our brochure or give us a call at 973-387-1080.


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