What is Family Foundation?
A family foundation is a private foundation established by a wealthy family to pursue philanthropic goals. Many family foundations invest their endowment in private markets — including venture and private equity funds — to generate returns that fund grantmaking.
A family foundation holds donated assets and distributes grants to charitable causes. Like endowments, foundations must invest their corpus to preserve purchasing power over time. Many — particularly large private foundations — allocate to private equity, venture, and real assets as part of a diversified investment portfolio.
Family foundations are required to distribute at least 5% of assets annually to maintain their tax-exempt status, creating a steady payout obligation that shapes their investment strategy. Their Form 990-PF filings are public and reveal total assets, investment income, and grants paid.
Also known as: private foundation, charitable foundation