As quoted in the article by Sherri Begin Welch
…According to the Foundation Center in New York, the number of all foundations in Michigan grew 20 percent to 2,092 between 2000 and 2006, said Mark Neithercut of Neithercut Advisors L.L.C. in Detroit.
In 2006, 48 percent of family foundations gave away less than $50,000 per year, and 60 percent had assets less than $1 million, Neithercut said, again citing Foundation Center data. “That means there are thousands of tiny family foundations out there,” he said.
It takes several months and about $5,000 in legal fees to set up a family foundation, he said. “We advise families not to think about a family foundation unless they are funding it with at least $10 million, because of the administrative costs.”
“I think sometimes people establish family foundations because they think it’s a trendy thing; they don’t realize the ongoing paperwork and expenses associated with that charitable giving option,” Neithercut said. “If your goal is charitable … there may be better ways to do this, especially if your assets are small.”
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