You want to make a significant gift to an institution or organization… Given the amount of funds you are willing to commit, the gift should align with your intent and the capacity and needs of the organization. It’s also important that your interests are protected because significant one-time gifts are an investment, and like any investment, they come with opportunities and risks.
Whether gifts are made from a Foundation, Donor Advised Fund, Trust, or checkbook, we work with our clients’ legal counsel to mitigate the following risks that can cause complications and frustrations:
An institution may use the funds in ways that are inconsistent with your wishes or values.
Your gift may not have the intended impact because external factors make it difficult to achieve the desired outcomes.
Depending on the nature of the institution and the cause it supports, your association with an institution could affect your reputation.
An institution may not have adequate governance and compliance practices in place.
There may be tax and legal risks associated with making a large one-time gift, such as triggering an IRS audit or running afoul of regulations.
Too often, gifts are made with the right motivations but without enough attention to the “what ifs” that can happen. For example:
These scenarios have happened to donors, which is why we research and develop each gift’s construct and specifics to include benchmarks and accountability.
The result of our work together is a gift that has the greatest meaning for all stakeholders while simplifying the process and providing you with ongoing support in assessing the gift’s impact. In addition, your legal counsel will have the appropriate philanthropic language for the gift agreement to ensure your intent is codified.