Roger D. Silk & James W. Lintott 
Creating a Private Foundation 
The Essential Guide for Donors and Their Advisers

Imagine all you’d like to accomplish with your philanthropy. Nowpicture a large portion of your resources never reaching theirintended use due to poor strategies, mismanagement, or unnecessarytaxes.
Today the opportunities in the philanthropic sector are greater andmore varied than ever. Private foundations, which offer severalestate and tax-planning advantages as well as unparalleled donorcontrol, have become the vehicle of choice for more than sixtythousand individuals and families–and may be ideal foryou.
Creating a Private Foundation introduces the issues you needto understand and gives the big picture on how foundations work. Ittells you exactly what is involved for you, for the causes you careabout, for your finances and taxes, and for your heirs.
Chapters address the practicalities as well as the implications offounding, funding, organizing, and operating an effectivefoundation, including growing its endowment, allocating its assets, and selecting professional foundation management help. Roger Silk, James Lintott, and their colleagues, leaders in the foundationconsulting arena, have pooled their wisdom in this comprehensiveguide for donors and your advisers. If you’re looking to makea difference, there is no better guide.

Table of Content

Acknowledgments ix
Introduction xi
1 Philanthropy 101: The Basics of Charitable Giving 1
2 Powers of Deduction: Tax Advantages of Private Foundations 23
3 Advanced Planning: Combining Foundations with Charitable Lead Trusts and Charitable Remainder Trusts 35
4 A Family Enterprise: Foundations and Children 45
5 Carpe Diem: Set Up a Foundation While You’re Still Alive 53
6 Effective Foundations: The Business of Philanthropy 65
7 The Endowment: Developing an AppropriateFoundation Investment Policy 99
8 Developing and Implementing a Foundation Asset Allocation Policy 109
9 Compliance: The Legal Do’s and Don’ts 127
10 Other Planned Giving Vehicles 139
11 For Advisers: Building Client Assets with Private Foundations 151
12 How to Select a Foundation Manager 161
13 What Can You Donate to Charity? 171
Conclusion 185
Resources 187
Index 195

About the author

Roger D. Silk, PhD, CFA, is chief executive officer ofSterling Foundation Management, LLC. A leading expert in the fieldof private foundations, he has written articles that have appearedin magazines such as Estate Planning, Philanthropy, Trusts andEstates, Investment Advisor, Journal of Financial Planning, andthe Journal of Personal Financial Planning. He is currentlya director of several charitable organizations, including theGeorge Mason University Foundation.
James W. Lintott, Esq., is chairman of Sterling FoundationManagement, LLC. Previously, he was head of one of thenation’s largest private foundations. Mr. Lintott serves onthe boards of a number of nationally known charities, including theChildren’s National Medical Center in Washington, DC.
Christine M. Silk, PhD, has written on a wide variety ofsubjects, and her work has appeared in numerous magazines andnewspapers.
Andrew R. Stephens is an attorney with extensive experiencein foundations.