Legal Considerations for Trust-Based Philanthropy

Oftentimes in philanthropy, we tend to think of legal considerations in the context of compliance and risk mitigation — i.e., preventing things from going wrong and protecting funders from liability or harm. As a result, foundations that are curious about trust-based philanthropy may have questions about its legal compliance and legitimacy. Is trust-based philanthropy consistent with a foundation’s legal requirements? Can it be done prudently and responsibly?'

This primer, developed with the counsel of nonprofit attorney Jean Tom, answers frequently asked legal questions about trust-based philanthropy, and offers guidance on how private independent foundations can work within legal parameters to reinforce trust and relationship-building with grantee partners.