A Step by Step
Many families frustrated by the upkeep of their private foundation are choosing to unwind their foundation into a Donor Advised Fund at a public foundation. The following checklist can help you through the necessary steps, in the most logical order, to convert or dissolve your private family foundation to a WaterStone Donor Advised Fund:
- Review documents which created the foundation to determine dissolution provisions and to be sure you are in compliance with your decision.
- Obtain Board of Director’s approval and document in the Minutes of the Board of Directors a Resolution of Termination and Plan of Distribution.
- Satisfy commitments of any legally binding agreement (such as pledges) made by the foundation.
- Pay any legal or accounting fees for dissolution prior to transfer distribution to your WaterStone Donor Advised Fund.
- Submit WaterStone Donor Advised Fund application for approval of your Proposed Purpose.
- Make last distribution to your WaterStone Donor Advised Fund including required annual 5% payout for the year.
- File Notice of Dissolution with the Secretary of State in the state of incorporation and take all necessary state required steps.
- Submit a final IRS Form 990-PF to the IRS including a copy of the Resolution of Termination and Plan of Distribution.
Contact WaterStone at WaterStone@WaterStone.org for more information on converting your Private foundation to a Donor Advised Fund.