Is Perpetuity Too Long? Family Foundations Can Increase Impact With Sunset Dates
Author: Mark Neithercut.
Source: Volume 20, Number 04, May/June 2021 , pp.5-8(4)
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Abstract:
A number of studies have looked at the benefits of establishing a termination or sunset date for foundations. Most of these studies have considered the benefits of a “spend-down” or “spend-out” policy (as opposed to operating in perpetuity) for staffed private foundations that may or may not have involvement from the founder’s family. Yet, family foundations, especially the smaller variety, are distinctly different enterprises than their large, professionally staffed, private foundation cousins. This article reviews the sunset-vs.-perpetuity issue and considers the potential benefits of a sunset date, with the special considerations of small family foundations in mind.Keywords: Spend-down and Spend-Out Policies
Affiliations:
1: Neithercut Philanthropy Advisors.