1. Making good things happen isn’t always easy in the non-profit arena

Participating members of a family foundation client of mine felt strongly that they would have the greatest impact on society by addressing the needs of individuals who found themselves in dire straits through no fault of their own. They were discouraged to learn that IRS compliance requirements are complex and burdensome for family foundation distributions made directly to individuals.My strategy was to develop a network of family service agencies and a means by which the agencies might bring the needs of eligible clients to the family’s attention. The agencies verified the clients’ needs and assumed responsibility for overseeing the use of funds awarded. Through this system, the family’s funding was directed to the non-profit agency for the specified client and designated purpose. All donations were eligible per the regulations pertaining to family foundation distributions to qualified agencies – a relatively straightforward process. The strategy worked so well that the family went on to expand the enterprise and establish a non-profit corporation assisting individuals in need in 22 counties in California.

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