Giving back and leaving a legacy that reflects your values can be a very meaningful part of your estate planning. In fact, putting some real thought and intention into what kind of an impact you'd like to make after you're gone can even help folks approach estate planning from a more positive perspective and make some of the tough decisions they might otherwise put off for too long. 

While giving a portion of your assets to charitable organizations and nonprofits is often the simplest option, it's not always the most sustainable choice, or the best option for families. Here are three reasons to consider adding a family foundation to your Life-Centered Financial Plan.

1. Maintain control over your legacy.

A private family foundation is a charitable organization that's primarily funded by an individual or family. Unlike public charities, which solicit support from the public through fund drives and other initiatives, a family foundation relies on your family's assets, including cash, securities, and real estate. By law, 5% of those assets have to be dispersed every year. Founders can establish specific bylaws that determine how those distributions can be used. Family foundations usually restrict board seats and other executive positions to family members, although some may hire a third-party professional manager to oversee day-to-day operations. 

With the right structure in place, a family foundation can have much more independence in its mission than public charities. And with the proper financial planning, a foundation can also provide some signification tax benefits that could help your family keep giving for generations. 

2. Make charitable giving a cornerstone of your family. 

Even if you involve your heirs in choosing charitable beneficiaries, "one-and-done" donations will effectively end your family's charitable mission as soon as the checks are cashed. Bringing family members into a foundation -- especially while you're still around to manage it -- can strengthen family bonds and create a deeper sense of connection to your charitable mission. 

Perhaps during a family vacation or over the holidays, gather your family together and discuss the causes and values that are most important to you. Give every family member a voice so that everyone feels like they have a stake in this new organization and the mission you all decide upon. Once it's time to establish the foundation, define roles and establish clear expectations for all family members who want to take an active part. Communicate clearly with your family about your preferred succession plan for the foundation and how you want your heirs -- and, perhaps their heirs -- to carry on the family's mission. 

3. Develop a wider variety of personal and professional skills.

No matter what size your family foundation is, the organization will probably require administrative support, IT, graphic design, accounting, payroll, and other professional services. Some of these needs you might farm out to third-party companies. Others you might fill by hiring top pros outside your family. 

But at every level of the organization, there will be opportunities for family members to put their professional skills to good use, learn new skills, and grow as leaders. Retired relatives might find part-time jobs that give their days more structure and meaning. Recent college grads can cut their teeth in entry-level positions, gaining skills and experience that will benefit the family foundation and their own careers. Taking on different responsibilities within the foundation can also challenge family members to expand their horizons and gain real expertise around the causes that are central to the foundation's mission.

Are you looking for ways to get more Return on Life from your charitable giving? Let’s meet and explore if starting a family foundation could help you realize your goals.