Although the rewards of giving can be the part of foundation work you find most rewarding, an ongoing assessment of the foundation's grantmaking activities is a must. The IRS requires that a foundation be organized and operated exclusively for charitable purposes and that it operate in accordance with its charitable mission, conforming to the foundation's Form 1023 and exemption letter. There are laws that the foundation must follow on both the federal and state level. Your financial advisor can help you identify these laws.

Periodic reviews of the foundation's activity can keep it on track to meet the foundation's goals and allow you to adjust its strategy as necessary. When assessing how far the foundation has come in meeting its charitable and financial goals, consider the following:

Fulfilling Charitable Intent

The foundation's mission statement is a benchmark against which you can measure the difference the foundation is making to the organizations and causes it supports. Looking back at the "purpose for giving" as set forth in the foundation's mission statement, you may be able to identify a specific outcome — such as a program or service — that was made possible or enhanced by the foundation's contribution.

Ask yourself whether the organizations the foundation has supported are stronger and better able to fulfill their missions as a result of the foundation's support. If not, you might wish to reconsider parts of the foundation's strategy to make sure the foundation achieves its objectives. Consider, for example:

• The types of organizations or approaches that are most effective in addressing the causes you care about — Have there been any new developments in the broader field?
• The root barriers to success for your grantees — Are they facing challenges in other areas that are affecting the programs you have funded? Is there a way that you can help address those challenges?
• The way the foundation monitors progress — Do foundation board members or staff conduct site visits to see the progress of the organization first hand? Are grantees required to submit any progress reports? You may wish to develop success metrics in partnership with each grantee and then monitor them carefully throughout the year.

Reaching Financial Goals

Meeting specific financial objectives can serve as a direct measure of the success of your giving. Consider the following questions:

• Have you reduced your income tax burden?
• Is your estate now structured to minimize potential estate tax losses?
• Have you integrated your private foundation planning with that of any other giving vehicles you have?
• If applicable, have other family members accomplished their financial goals?
• Have you been able to fund your foundation or plan for future funding to the level that you desire?

Your professional financial advisor can help you determine if the plan you laid out is having the desired result on your financial situation — and if it is still the right plan for you and your family.

Meeting Family Giving Goals

If you are giving as a family, you might utilize each periodic review as the occasion for a family meeting. In preparation for this meeting, think about which parts of the foundation's plan you would like to review together. For example, you might focus on charitable successes and tread lightly on financial issues in discussions with younger family members. By contrast, you might make it a priority to discuss the progress of the wealth transfer component of your giving plan with adult children.

In addition, consider your personal priorities for family involvement:

• How active have your family members been in the foundation?
• How has the foundation affected family relationships?
• Are younger family members learning the skills or values you wanted to pass on?
• Overall, are you satisfied with your progress?

Periodically assessing your impact provides you with an opportunity to see the difference that your giving strategy is making in your life and the lives of others.

Speak with a representative: 866-273-2130