Legacy Issue

Nonprofit

Performance

Magazine

amily foundations are on the

rise. And you don’t have to be a

Rockefeller, Kennedy, or Gates to have

one. There is no standard definition

for family philanthropy or a family

foundation, which is not part of

the IRS classification for nonprofit

organizations

and

foundations;

however, according to the National

Center for Family Philanthropy, family

foundation typically connotes the active

involvement of members of the donors’family

in the foundation. But as the original donors

die, their descendants may have various levels

of involvement with the foundation.

The annual report on philanthropy from the

Giving U.S.A. Foundation reports, “Not only

did total giving by foundations grow 8.2%

in 2014, gifts from all three types - commu-

nity, independent and operating - also went

up. The annual changes in this category are

influenced most by grants from independent

foundations; their 2014 gifts were 7.8% high-

er than in 2013 and accounted for 74% of the

category’s total.”

As middle-class Baby Boomers and Gen-

eration Xers begin to inherit their families’

wealth, many are creating family foundations

to serve philanthropic causes that resonate

with the family or continue a relative’s legacy.

And it isn’t as expensive as you might think.

Scott Nelson, certified financial planner for

Sagemark Consulting in California, says that

it’s possible to create a private foundation

with an initial gift of $5,000, far less than

most people assume. Family foundations can

keep far-flung families connected and con-

tinue family values through the generations.

Meet the MacCreadys

Marshall MacCready, who along with his

siblings established the MacCready Family

Foundation shortly after their father died,

says it makes sense to establish a foundation

when assets pass to the next generation. “It

was easy for us because we are a like-minded

family. When we inherited the money, we sat

down with advisors and spoke about our mo-

tivations. We could have taken a lump sum,

and divided it between us, but when we saw

the benefits of establishing a foundation, it

made perfect sense.”

Molly Knox, a MacCready family mem-

ber and president of the MacCready Fam-

ily Foundation, shares the sentiment echoed

by other Baby Boomers who inherit money.

She and her husband, along with the other

MacCready siblings, already had established

careers and comfortable homes for their

families. Her initial reaction was that nobody

deserved this much money.

Creating Sustainability

The MacCready philanthropy strategy

focuses on giving unrestricted multi-year

operating grants to a handful of small, youth-

focused nonprofits, instead of seeding many

nonprofits with smaller grants. Larger grant

amounts help often-overlooked smaller

organizations make a greater impact on the

community they serve. This giving strategy

sets the MacCreadys apart from other family

foundations that give grants earmarked for

specific programs and to several organizations.

Create Your Own Family Foundation

DAViD ANDr

S kiETzMAN

The MacCready Foundation cur-

rently supports three nonprofits in

the Los Angeles area: My Friend’s

Place, which provides homeless youth

with resources and a safe space; Youth

Speak Collective, which gives young

people a leadership role in their com-

munities; and RootDown L.A., where

youth grow fresh produce for their

peers in underserved communities and teach

them about nutrition and cooking.The Mac-

Creadys also support the Community Sci-

ence Workshop Network that focuses on giv-

ing underprivileged youth the opportunity to

discover science.

“One of the most important things the Mac-

Creadys have done is to help us sustain our-

selves over time,” says Megan Hanson, execu-

tive director, RootDown L.A. “They gave us

an initial capacity building grant and have

since provided consistent contributions that

help cover core operating costs and have at

times been leveraged as mandatory match-

ing funds to win federal grants.There are few

foundations that do these multi-year invest-

ments and the donation is integral to our sus-

tainability.”

The MacCreadys, like many other families,

have determined that they want to leave a

legacy that is focused on giving. Giving your

time, money, and energy can bring significant

impact in any community and sets the tone

for generations to come.

David Andr

s Kietzman is a talented social impact

leader, known for his ability to fuse management,

fundraising and marketing at Momentum Solutions and

as a professional coach. He serves clients, donors, civic

leaders and community residents by helping everyone

create a stronger impact through clear communication,

building partnerships to help increase their funding,

clients, or participants. Twitter @dakeitz

david@momentumsolutions.com