Practical Concerns for When a Foundation SplitsPractical Concerns for When a Foundation Splits

Occasionally, legal practitioners will come across a private foundation (PF) that’s decided to split into two (or more) PFs. The reason for the decision could be as varied as the pending divorce of the founders, family dissension that impacts productivity or simply a lack of consensus regarding the PF’s philanthropic focus. In these cases, it’s not always as simple as dividing the assets into equal parts; rather, practitioners should take a number of factors into account to ensure an informed division. Here’s a step-by-step guide that will highlight the practical considerations that arise in these (often contentious) situations and provide the framework for how to plan for such an event.

Technical Overview

Generally, when a PF makes a gran...