PRIVATE FAMILY FOUNDATION CASE STUDY

enjoys seamless, transparent oversight

Clearstead has experience working with private clients family foundations that serve various roles in communities and mission. In some cases we have found that long-standing family foundations have difficulty engaging the next generation of family members in the day-to-day operations of the foundation. The next generation can lack a financial background or deep understanding of the complex facets involved in such an enterprise and can be ill prepared to continue its mission if anything happened to the family patriarch. Clearstead has experience working with family foundations and helping next generations understand a sense of responsibility to a foundation’s mission and stewardship.

WE BEGIN BY CREATING THE INFRASTRUCTURE NECESSARY TO ALLOW YOUNGER GENERATIONS TO BETTER UNDERSTAND A FOUNDATION’S NEEDS AND CLEARSTEAD’S ROLE. OUR APPROACH TYPICALLY STARTS WITH BRINGING FAMILY MEMBERS TOGETHER FOR MEETINGS AND CREATING AN INVESTMENT POLICY THAT ESTABLISHES PARAMETERS, BASELINES, AND TIMELINES FOR ALL OF CLEARSTEAD’S ACTIONS.

Once a family agrees on a policy, we develop an asset allocation to meet the foundation’s goals. Clearstead can help foundations recommend investments to help set appropriate and realistic return expectations to meet the long timeframe of this type of portfolio. We are able to illustrate how the right asset allocation could balance risks and returns, and grow at a rate in excess of inflation.

The next step in Clearstead’s process is to determine what investment strategies would make up a foundation’s portfolio. Our approach is typically a blend of active and passive investment managers to deliver optimal returns in the lowest cost manner.  Clearstead can also educate the foundation trustees on the potential advantages of alternative investments and introduce them into the portfolio. 

Clearstead can also design and implement a cash flow planning process, creating a schedule that meets a foundation’s quarterly needs, and communicating with trustees in advance of these needs to avoid surprises. This can free up time for foundation trustees who are otherwise occupied by their own professions and daily lives. 

Our goal is for family members to become more actively involved and develop a clear strategy for succession planning.

Find Your Clarity

We bring our clients objective financial leadership through our fee-only advisory model, which enables us to remain objective. We do not offer proprietary products and take no commissions from product sales: our only source of revenue is fees we receive for financial advice. True to our founding principles, we do the hard work: the day-to-day investment management integrated with organizational priorities and family aspirations.

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Clearstead is an institutional and private client advisory firm that is relentless in providing solutions so our clients can exceed their aspirations and build stronger legacies for their families, their communities, and themselves.

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