FAMILY FOUNDATION HANDBOOK BY JERRY J. MCCOY & KATHRYN W. MIREE
(BALTIMORE, MD: ASPEN PUBLISHERS INC., 2002). 720 PGS. $185 (PLUS ANNUAL
SUPPLEMENTS). ORDER, (800) 234-1660
Erik R. Guenther
Copyright © 2003 by State Bar of Wisconsin; Erik R. Guenther
The authors bring their considerable expertise in tax exempt organizations and charitable gift-planning to the table in creating this excellent resource. This book is written for a broad audience of attorneys, financial planners, accountants, foundation administrators, and potential donors and directors of family foundations, but the broad scope does not detract from its value to lawyers in this field.
The book provides an overview of the topic in the more general chapters and then, to aid the legal professional, includes one or more appendices following each chapter that cover specific sections in detail. (For example, a step-by- step guide to completing Form 1023 for nonprofit status is appended to the chapter covering the creation of a family foundation.) The format aids in comprehending the general topics and makes the more detailed issues easier to navigate.
The advantages and disadvantages of the family foundation are laid out in detail along with alternative forms of charitable planning, including donor- advised funds and outright contributions. The chapters cover a historical overview of private foundations; a "how-to" guide to create and design family foundations; the use of charitable trusts to fund family foundations; restrictions on family foundations, grant-making and grant administration; and guidance on special tax issues.
Clear explanations are given for problematic issues such as self-dealing, distributions, tax reporting, and how to advise your clients in these and other difficult areas. The book also provides practical tools such as checklists, sample forms, and sample policies that can be used as models when setting up a family foundation for your client.
The National Center for Family Philanthropy reports that there are approximately 40,000 private foundations in the United States today. Despite the significant decline in the formation of family foundations after the passage of the Tax Reform Act of 1969, more foundations are now being created each year. The Economic Growth and Tax Relief Reconciliation Act of 2001 is unlikely to notably lessen that number, so this handbook will continue to be useful to assist your clients in charitable planning issues.
Attorneys in this area will benefit from the comprehensive coverage of legal, tax, and business aspects of forming and operating a family foundation in order to more effectively serve their clients in charitable estate planning issues.
If you are interested in setting up a family foundation, please contact Hostak, Henzl & Bichler, S.C. attorney Stephen Smith at 262.632.7541.