Turn Passion into a Lasting Legacy
For those seeking to create enduring impact, endowments and private foundations are powerful vehicles for meaningful, long-term giving.
Endowments: Sustainability for the Future
Endowments are designed for sustainability, ensuring that your charitable contributions continue to grow and provide consistent support to the causes or institutions you care about most. By preserving the principal and distributing only a portion of earnings each year, endowments provide a reliable source of funding over time. This structure helps ensure that your vision and values remain at the heart of the mission well into the future.
Private Foundations: Hands-On Giving
Private foundations offer a more hands-on approach, providing you with the flexibility to shape your philanthropic mission and direct how and where funds are distributed. Private foundations also offer the opportunity to involve future generations in your legacy of giving, blending personal involvement with strategic tax planning. While they come with added complexity, private foundations can be incredibly rewarding for those seeking to have a deeper impact and engage others in their charitable endeavors.
Building the Foundation: Strategy, Structure, and Stewardship
A key element of that foundation is the Investment Policy Statement (IPS). This guiding document outlines your investment strategy, risk tolerance, asset allocation, spending policy, and long-term goals. It helps ensure your assets are managed responsibly and consistently with your mission.
Key Terms to Know
- Investment Policy Statement (IPS): A formal document that defines how the assets of your endowment or foundation will be managed, including goals, risk tolerance, asset allocation, and spending policies. The IPS ensures that the investment strategy aligns with your mission and long-term vision.
- Organizational Governance: Refers to the systems, policies, and people responsible for providing leadership, oversight, and accountability within the foundation or nonprofit. Strong governance is crucial for sustaining long-term philanthropic success.
- Grantmaking Guidelines: These outline the criteria and processes for distributing funds to individuals or organizations, ensuring alignment with the foundation's mission and maximizing impact.
- UPMIFA (Uniform Prudent Management of Institutional Funds Act): A legal framework that guides how nonprofit organizations invest and spend endowment funds. UPMIFA emphasizes long-term sustainability, requiring prudent decision-making to protect the principal and ensure that funds are used appropriately for charitable purposes.
- Spending Policy: This guideline determines the percentage of the endowment’s assets that can be distributed each year—typically around 4–5%. It aims to balance charitable activities while preserving the principal for future generations.
- Reserve Fund: A pool of money set aside to support operations during periods of economic stress or lower-than-expected fundraising. This fund acts as a safety net to ensure continuity of the foundation’s mission during challenging times.
- Performance and Impact Analysis: The process of evaluating both the financial returns of the endowment and the real-world outcomes achieved through its grantmaking. This ensures that the foundation’s efforts are not only financially sound but also socially impactful.
Real-World Impact: Success Stories and Testimonials
Roger J. Trinchero Family Foundation Impact Report
The Roger J. Trinchero Family Foundation has been instrumental in creating meaningful, long-term change. Through strategic philanthropy and careful governance, the Foundation has supported a wide array of causes—ranging from education to health and community development.
View the full Impact Report here
Testimonial: A Legacy of Giving
"The creation of the Roger J. Trinchero Family Foundation has allowed us to give back in ways that go beyond just financial support. We have built a legacy that will continue to have a meaningful impact for generations. The ability to see our vision come to life has been a deeply fulfilling experience, knowing that our giving continues to serve those in need."
- Roger J. Trinchero, Founder of the Roger J. Trinchero Family Foundation
The client was not compensated, nor are there material conflicts of interest that would affect the given statement. The statement may not be representative of the experience of other current clients and does not provide a guarantee of future performance success or similar services. The client testimonials presented were chosen by the firm, other clients may have different experiences.
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Your legacy deserves a thoughtful plan. Whether you're starting an endowment or building a private foundation, we're here to help you make it meaningful and lasting.