Private Foundations

Private or family foundations with a managing board can be set up by donors who want to maintain control over assets gifted to a charity.

How Do They Work?

• Private foundations can be either a corporation or a trust. They are subject to complex tax regulations, and the rules regarding income tax deductions for private foundation gifts are less favorable then those for gifts to public charities.
• Private foundations are required to distribute 5% of the value of their non-charitable assets annually, must file a tax return and are subject to a 2% excise tax.

Getting Started

City National has formed an alliance with Foundation Source to provide administration and compliance services for private foundations. Click here for more information on these services.

To learn more, please contact us or visit us at one of our Private Client Services locations.