Protecting Privacy


As much as communicating might help, many families wish to preserve and protect their privacy or anonymity. Here are a few tips:

Take your philanthropy “off the grid”
Those wishing to protect their privacy have quite a bit of latitude to do exactly that. Nothing in the law requires you to list your personal telephone number in the phone book, create a website, maintain a public office, print business cards, publicize your grants, be acknowledged by a grantee on a list of donors, or take advantage of naming opportunities.

Consider or reconsider the name of your foundation or fund
A giving vehicle allows a family to create a sort of alter ego. In a classic example, John Andrus dubbed his creation the Surdna Foundation in 1917. Surdna is “Andrus” spelled backwards. Other families have been equally creative in crafting brands that deflect attention away from the family and toward the causes they care about.

Consider other giving vehicles
It is legally impossible to give anonymously through a foundation, due to tax reporting requirements. Add to that the increasingly sophisticated services of organizations like the Foundation Center and Guidestar, both of whom make the Form 990-PF of the nation’s foundations available online in searchable databases. Chances are, your foundation’s filings will be seen by enterprising grantseekers and fundraisers, curious reporters, and casual web users.

For this reason, many families consider alternative vehicles, such as donor-advised funds or giving circles, where giving can be largely anonymous. If you have a foundation and are concerned about privacy, you may want to consider whether your goals can be achieved through another kind of vehicle. Some families use multiple giving vehicles for different kinds of giving.

Avoid unwanted contact
Ironically, one way of preserving privacy in some areas is to communicate more in others. If you’re a foundation, begin with the Form 990-PF. On page 10, there is a box that can be checked to indicate that your foundation “only makes contributions to preselected charitable organizations and does not accept unsolicited requests for funds.” Include this language on your website, if you have one, and on any materials for current and potential grantees.

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