Family Foundations

The Council on Foundations defines a family foundation as one whose funds are derived from members of a single family, though this is not a legal term and has no precise definition. The Council on Foundations suggests that family foundations have at least one family member serving as an officer or board member of the foundation and, as the donor, that individual (or a relative) must play a significant role in governing and/or managing the foundation. Most family foundations are run by family members who serve as trustees or directors on a voluntary basis. In many cases, second- and third-generation descendants of the original donors manage the foundation.

Family foundations make up over half of all private (family, corporate, independent, and operating) foundations, or 40,456 out of approximately 73,764 foundations (Foundation Center, 2011). Family foundations make up approximately one-third of the Council’s membership.

Family foundations range in asset size from a few hundred thousand dollars to more than $1 billion. The holdings of family foundations total approximately $294 billion, or about 44 percent of all foundation holdings of $662 billion. Despite this, three out of five family foundations hold assets of less than $1 million. Family foundations gave away approximately $21.3 billion in grants in 2011 (The Foundation Center, 2011).

Below is everything on our site for family foundations. Due to the large number of resources on our website, we highly recommend you use the site navigation or the search feature to find what you are looking for.

Should CEOs Be on the Board?

Fundamentals
This briefing will help your board consider three main questions: what are the advantages and limitations of CEOs on boards? If the CEO is on the board, should they have full voting rights? How do your colleagues approach this decision?

What is the Best Size for Your Board?

Fundamentals
This article will help your board consider three main questions: What are the advantages and limitations of large versus small boards? What size will help us best accomplish our mission? How do our colleagues approach this question? Although board size varies significantly among different…

Articulating the Foundation's Mission

Fundamentals
A mission statement gives all who are interested an idea of why the foundation was established and how it defines its own work. The statement is usually broad, worded to reflect the donor’s intent, and give a flavor of the foundation’s values and interests. For family foundation trustees,…

Answers to Common Questions on Generational Succession

Most families and foundation leaders are uncertain about what is involved in continuity planning. You may have some of these common questions; here are some answers and explanations. Why worry about continuity? We’ve got plenty of work to do just managing our grantmaking. Why worry about the…

An Introduction to Board Composition for Family Foundations

Fundamentals
Family foundations must grapple with many questions when determining who will serve on the board. For example, who is eligible for board service? The easy answer for many foundations is that all family members are eligible, but how do you define "family member"? This document highlights some…

Ten Ways for Family Foundations to Consider Diversity and Inclusive Practices

Publication
Please note: This resource was published in 2010.   This guide is designed to help foundations consider how more diverse and inclusive practices might advance their mission by making their work more effective and more reflective of communities served. By highlighting 10 ways family…

Public Disclosure of Form 990-PF

Legal Compliance Guidance
Question: Our staff just received a request for a copy of our foundation's Form 990-PF. Are we required to provide this information? Answer: Yes. A foundation’s tax return on Form 990-PF provides a wealth of information about the organization including asset size, board members, salary information…

Private Foundation Excise Tax Rates

Legal Compliance Guidance
The Pension Protection Act of 2006 (PPA) increased the excise tax rates for violations of many of the private foundation rules. In most cases, the first-tier taxes were doubled. These changes are effective for private foundations upon the foundation’s first tax year beginning after August 17, 2006…

Working with the Media

Fundamentals
Working with the media should be part of your overall communications plan. Even if you don't have a written communications plan, you still need to focus some attention toward the media. Working with the media—that is, public relations—establishes a strong public presence and image for your…

Handbook on Responsible Investment Across Asset Classes

External Resource
From the Boston College Center for Corporate Citizenship, this handbook on responsible investing provides the blueprint for foundation asset managers interested in multiplying their organization’s impact on society. 

Case Study: Expanding Philanthropy - Mission-Related Investing at the F.B. Heron Foundation

External Resource
Prepared by the Southern New Hampshire University's School of Community Economic Development and available through Mission Investors Exchange, this case study explores the details of the F.B. Heron Foundation's rationale, exploration, and implementation of its mission-related investment strategy,…

Compounding Impact: Mission Investing by U.S. Foundations

External Resource
This report by FSG Social Impact Advisors provides the first comprehensive analysis of mission investing by U.S. foundations and analyzes the activity of 92 U.S. foundations, which have made a combined total of $2.3 billion of mission investments.

Mission Possible: Emerging Opportunities for Mission-Connected Investment

External Resource
From the New Economics Foundation, Mission Possible considers how foundations might more effectively use a proportion of their endowment in support of the change they set out to create – their mission. Starting from the premise that paths are made by walking, it explores the potential of ‘mission-…

Getting Started with Evaluation

Fundamentals
As different as foundations can be from one another, they all share the need to know what works and, especially, what works well. The more foundations can show how their grants are making a difference, the more value they can bring to their communities. To know what works, foundations must…

Getting Started With Social Media

Fundamentals
Social media is an increasingly prevalent part of our world. Whether it’s on the news, sitting in traffic, or talking with colleagues, you’ll be hard-pressed to avoid mention of Facebook or Twitter. Is there a good way for your foundation to become involved? Perhaps your board chair suggested that…

Funding a Dissolving Nonprofit

Legal Compliance Guidance
Question: Our foundation has been funding a local nonprofit for the last ten years. The nonprofit has one full-time employee and an annual operating budget of about $300,000. The nonprofit recently requested a $50,000 grant for operating expenditures or it will have to close down immediately. Even…
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