Converting Your Private Foundation

Transfer your time and energy to the sole purpose of giving.

By converting your private foundation to a charitable fund at ACT for Alexandria, you can avoid the administrative and compliance burdens of a private foundation, avoid termination tax, and still fulfill your foundation’s charitable purpose.

Often, private foundations choose to convert to a Donor Advised Fund as this allows donors to participate in grant recommendations. Other options include converting to a Field of Interest Fund or a Scholarship Fund. Whatever fund you choose, ACT for Alexandria will handle all the administration, reporting and filing required.

Frequently asked questions

What costs are involved in converting my private foundation into a fund at ACT for Alexandria?

There are no set-up fees associated with creating a fund at ACT. Generally, a private foundation would incur fees paid to its advisor to file the termination election and to handle any other outstanding issues. There could be costs associated with the transfer of assets if the assets are other than cash or marketable securities.

Can the fund have the same name as my private foundation?

Yes, a fund can carry the name of the private foundation that established it.

Can our founder, family members and/or board of directors still have input regarding what grants are made from the fund?

 Yes, if your private foundation decides to create a Donor Advised Fund, your foundation can designate who the fund advisors will be.