For many ultra-high-net-worth families, philanthropy is not simply about giving; it is about creating meaningful, lasting impact. A thoughtfully structured family foundation can become a powerful vehicle for aligning wealth with values, supporting communities, and engaging future generations in purposeful stewardship.
However, establishing a foundation that truly endures requires far more than good intentions. Governance, tax strategy, investment oversight, and family dynamics must all work together to support the mission over time. At Sequoia Financial Group’s Sentinel Family Office, guiding families through this complexity is part of how we help ensure wealth is preserved and directed toward lasting impact.
Defining the Mission and Legacy
A successful foundation begins with clarity of purpose. Families should consider the issues they care most deeply about and how they want their philanthropic legacy to evolve across generations.
Research shows that family philanthropy often strengthens engagement among younger generations while reinforcing shared values.¹ When family members participate in grant decisions, governance roles, or charitable initiatives, philanthropy becomes both an educational and unifying force.
At Sentinel Family Office, our role often begins with helping families articulate these priorities. Through thoughtful planning conversations, we help clients define the mission, establish giving parameters, and structure governance in ways that reflect the family’s long-term vision.
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Choosing the Right Structure
While private foundations are a common vehicle for family philanthropy, they are not the only option. Donor-advised funds, charitable trusts, and hybrid strategies can also play a role depending on the family’s objectives.
Private foundations offer significant control and the opportunity to build a lasting charitable institution, but they also involve regulatory oversight, administrative responsibilities, and minimum annual distribution requirements.² In contrast, donor-advised funds may offer simplicity and efficiency but provide less direct governance.
Determining the appropriate structure requires a holistic view of the family’s wealth, tax strategy, philanthropic goals, and long-term governance preferences. Sentinel Family Office routinely coordinates these decisions alongside estate attorneys, tax advisors, and investment professionals to create a cohesive philanthropic strategy.
Governance That Supports Longevity
A foundation’s success often depends on the strength of its governance framework. Clear policies around grantmaking, board roles, investment oversight, and succession planning help ensure the organization remains focused on its mission long after its founders step back.
Establishing governance guidelines early also helps reduce potential conflicts among family members and provides structure for future leadership transitions.
Sequoia’s Sentinel Family Office frequently works with families to design governance models that balance flexibility with accountability, allowing future generations to adapt the mission while honoring the founder’s intent.
Investing for Impact and Sustainability
A foundation’s investment strategy is equally important. The assets supporting philanthropic activity must be managed prudently to sustain giving over time.
Private foundations in the United States are generally required to distribute at least 5% of their assets annually toward charitable purposes.² A disciplined investment approach helps ensure that grantmaking today does not compromise the foundation’s ability to give tomorrow.
Through Sentinel Family Office, Sequoia integrates portfolio management with philanthropic planning, helping foundations pursue sustainable long-term growth while maintaining liquidity for ongoing charitable commitments.
Turning Wealth into Purpose
Establishing a family foundation is ultimately about more than structure or tax strategy; it is about turning wealth into enduring purpose.
At Sequoia Financial Group Sentinel Family Office, we regularly help families navigate the legal, financial, and governance complexities that accompany significant philanthropic initiatives. By coordinating investment strategy, tax planning, estate design, and family governance, we help ensure that charitable intentions are translated into meaningful and lasting impact. Because when philanthropy is structured thoughtfully, generosity can extend far beyond a single generation.
Sources
1 National Philanthropic Trust – Family Philanthropy Overview
https://www.nptrust.org/philanthropic-resources/charitable-giving-statistics/
2 Internal Revenue Service – Private Foundation Rules and Distribution Requirements
https://www.irs.gov/charities-non-profits/private-foundations
The views expressed represent the opinion of Sequoia Financial Group. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Sequoia believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Statements of future expectations, estimates, projections, and other forward-looking statements are based on available information and Sequoia’s view as of the time of these statements. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. Past performance is not an indication of future results. Investment advisory services offered through Sequoia Financial Advisors, LLC, an SEC Registered Investment Advisor. Registration as an investment advisor does not imply a certain level of skill or training.
Investment advisory services offered by Sequoia Financial Advisors, LLC, an SEC Registered Investment Advisor. Registration as an investment advisor does not imply a certain level of skill or training. This material is for informational purposes only and is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. Diversification cannot assure profit or guarantee against loss. There is no guarantee that any investment will achieve its objectives, generate positive returns, or avoid losses. Sequoia Financial Advisors, LLC, makes no representations or warranties with respect to the accuracy, reliability, or utility of information obtained from third-parties. Certain assumptions may have been made by these sources in compiling such information, and changes to assumptions may have material impact on the information presented in these materials. The tax and estate planning information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation. Clients requesting tax return or estate preparation services are referred to a commonly-held affiliate, Sequoia Tax Services or a third party and not Sequoia Financial Group.
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