A private foundation, formed correctly from day one
For families and founders establishing a grantmaking foundation, the legal step is one defined engagement — a New York nonprofit corporation with the provisions the IRS requires, governance documents a family board can actually live with, and the Form 1023 federal exemption application, handled through the IRS determination letter.
$9,500flat fee · confirmed in writing before work begins
Begin the Intake
Who this is for
Families formalizing multigenerational giving · Founders directing a liquidity event toward philanthropy · Individuals turning an informal giving practice into a durable institution · Advisors bringing structure to a client’s philanthropy
One engagement, a defined scope
Everything the legal step requires is stated up front — what the engagement covers, what it costs, and where it ends.
Private Foundation Formation & 1023 Exemption
One defined-scope legal engagement that takes a private foundation from intention to a filed federal exemption application — formed correctly from day one.
flat fee
- Nonprofit corporation formed with the purpose and dissolution provisions the IRS requires
- Bylaws and conflict-of-interest policy drafted for a family-governed board
- EIN obtained and organizational minutes prepared
- Form 1023 exemption application prepared and filed
- IRS correspondence handled through the determination letter
- Coordinated handoff to the administrator of your choice at launch
How the launch path runs
Engagement
A complimentary consultation, a preliminary conflict check, and a written engagement agreement stating the scope and the fee. No work begins before both are complete.
Formation
The New York nonprofit corporation is formed with the purpose and dissolution provisions the IRS requires, alongside bylaws and a conflict-of-interest policy drafted for a family-governed board, the EIN, and organizational minutes.
Federal exemption filing
The Form 1023 exemption application is prepared around your actual funding plan and grantmaking intentions, reviewed with you, and filed with the IRS together with the required user fee.
IRS determination & launch
We handle IRS correspondence through the determination letter. At launch, we coordinate the handoff to the administrator of your choice — or to no administrator at all, if you prefer to run the foundation yourselves.
IRS processing times vary considerably and are outside anyone’s control — nothing on this page is a promised timeline. We scope a realistic sequence for your situation at the outset.
Foundation or donor-advised fund — an honest comparison
A donor-advised fund is simpler and cheaper to run, and for many donors it is the right answer. A private foundation trades that simplicity for legal control and permanence. The differences that actually decide the question:
Control
The board you appoint holds legal control. Grantmaking, investments, staffing, and programs are governed by documents you set.
You hold advisory privileges. Grants are made on your recommendation, subject to the sponsoring organization’s approval and policies.
Succession
Built to outlast its founders — successor directors can be named in the governing documents, and the structure can carry a family’s giving across generations.
Successor advisors can usually be named, subject to the sponsor’s program; some sponsors limit how many generations may succeed to an account.
Who manages the assets
The foundation owns its assets. The board chooses the investment approach and any managers, within fiduciary and prudent-investment rules.
The sponsoring organization owns and manages the assets once contributed — a contribution is an irrevocable gift to the sponsor.
Payout obligations
Federal law requires distributing roughly five percent of net investment assets each year, backed by an excise-tax regime and annual Form 990-PF reporting.
No annual payout requirement applies to an individual account under current federal law, though many sponsors apply inactivity policies of their own.
Charitable deduction limits also differ — gifts to a donor-advised fund’s sponsoring public charity generally carry higher deduction ceilings than gifts to a private foundation. Which structure fits is a fact-specific decision, and we advise on it candidly — including when the answer is not a foundation.
Confidential from the first message
Everything shared through intake is reviewed under a preliminary conflict check — whether or not an engagement follows.
New York and federal law
Our attorney is admitted in New York. The entity is a New York corporation; the Form 1023 exemption is federal law, wherever you live.
Built for family governance
Bylaws and policies drafted so a family board can meet the private-foundation rules as a matter of routine.
After the determination letter
Formation is the legal step of a broader launch path. Foundation administration after formation — governance operations, grants management, and the compliance calendar — is available from Meridian Philanthropic, an affiliated philanthropic services firm.
Written Disclosure
Meridian Philanthropic is a philanthropic services firm owned by this firm’s founder. It is not a law firm. Foundation administration is a separate, non-legal engagement under its own agreement, and you are always free to engage any administrator you choose — or none at all.
Attorney Advertising. Prior results do not guarantee a similar outcome.
Every engagement begins with a conflict check and a written engagement agreement — no work starts before both are complete.
The IRS user fee and state filing fees are additional and are confirmed with you before filing.
The published flat fee is effective as of July 7, 2026 and will be honored for at least 30 days from that date.
Private foundation questions
If a private foundation is the right structure for your giving, the legal step should be the easy part. The first conversation is complimentary — no obligation.
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