How to Start a Foundation in Memory of a Loved One

How to Start a Foundation in Memory of a Loved One

The loss of my 14-year-old daughter Jenna created an unimaginable void in my life and in my family’s life. As I grieved, I found myself coping through 'doing.' Starting the #hersmile Nonprofit allowed me to live my love for Jenna out into the world while desperately trying to manage my grief. #hersmile was created to reflect Jenna’s spirit, impact, and love for life, ensuring that her influence continues to touch others in a meaningful and lasting way.

For those considering starting a foundation in memory of a loved one, the driving force often comes from the deep desire to keep their legacy alive. For me, founding #hersmile was not only a tribute to Jenna but also a powerful way to channel profound loss into purposeful action. 

It has become a source of strength and positive change, empowering individuals to thrive despite adversity and turning Jenna’s story into a beacon of hope. It is also a way to hold others up during their darkest days because once you know the unbearable pain of losing someone who is your world, you can never turn your back on others facing the same devastation. 

Through #hersmile, we are able to reach out and offer a hand to those navigating the depths of grief, letting them know they are not alone, and that the light of Jenna and their loved one is there to guide and comfort them, even in the midst of their deep sorrow.

Through #hersmile, Jenna’s life continues to inspire hope, strength, resilience, and inspiration, uplifting those in need and ensuring that her impact is felt far beyond her time with us.

The Deep Impact of Starting a Memorial Foundation

Losing someone you love leaves a profound void, one that often sparks a yearning to ensure their memory lives on, not just for who they were, but for the values and impact they left behind. Starting a foundation in their memory transforms that yearning into meaningful action, creating a lasting legacy that continues to touch lives in profound and positive ways.

A memorial foundation can have a far-reaching impact, both on individuals and on the world at large. It provides a structured way to channel grief into something constructive, transforming pain into purpose. By aligning the foundation’s mission with the passions and values of your loved one, you can create programs and initiatives that make a tangible difference in the lives of others, extending their influence beyond their time here.

For example, a foundation established in memory of a child who loved the arts could fund scholarships for aspiring artists, support underfunded school art programs, or sponsor community arts projects. Such efforts not only honor the child’s passion but also nurture creativity and expression in others, potentially shaping future generations of artists.

Similarly, a foundation dedicated to a loved one who was passionate about environmental conservation could spearhead reforestation projects, support wildlife conservation efforts, or fund educational programs that teach the next generation about the importance of protecting our planet. This not only preserves the memory of your loved one but also contributes to a healthier, more sustainable world for years to come.

Moreover, memorial foundations can be powerful advocates for social change. They can raise awareness about critical issues that may have affected your loved one or were close to their heart, such as mental health, healthcare access, or educational equity. By funding research, supporting advocacy efforts, and providing resources to those in need, these foundations become catalysts for progress, inspiring others to join the cause and create a ripple effect of positive change.

On a personal level, starting a foundation can be a transformative experience for those who are grieving. It offers a sense of purpose and a way to remain connected to your loved one, allowing their legacy to live on through the lives you touch. It can also foster a sense of community, bringing together people who are passionate about the same causes and creating a support network for others experiencing similar losses. This shared purpose can help to heal, uplift, and empower all those involved.

Ultimately, a memorial foundation is more than just a tribute; it is a testament to the enduring power of love and remembrance. It transforms the profound loss of a cherished life into a beacon of hope, creating a legacy that not only honors the past but also shapes a brighter future. Through the foundation’s work, your loved one’s light continues to shine, touching hearts, inspiring change, and leaving an indelible mark on the world.

Emotional and Social Benefits of a Memorial Foundation

Creating a memorial foundation serves as a bridge between personal grief and the collective healing of a community. It provides an outlet for the deep emotions of loss, allowing them to be transformed into positive actions that foster connection and solidarity. The emotional and social benefits ripple outward, offering comfort not only to the family but also to others who have been touched by similar experiences. Through the foundation’s mission, people find a shared purpose, a place to honor their loved one, and a sense of hope in knowing that their legacy continues to bring light and compassion to the world.

Step-by-Step Guide on How to Start a Foundation in Memory of a Loved One

Creating a foundation or a memorial fund may seem daunting, especially during the grieving process. But each step taken helps transform the overwhelming feelings of loss into actionable change that honors the loved one’s life and the values they cherished. Below is a step-by-step guide on how to start a foundation in memory of a loved one.

1. Define the Purpose of the Foundation

The foundation’s purpose is at the heart of everything. This is where the memories of your loved one come into play. To define the mission of your memorial foundation, consider the following:

• Reflect on What Mattered to Them: Were they passionate about education, healthcare, or the environment? Did they dedicate their time to serving a particular community?
• Identify What Brought Them Joy and Meaning: Understanding what gave their life purpose can guide the foundation’s focus.
• Choose a Specific Cause or Need:
  • Set up a memorial fund to assist with funeral costs.
  • Create a scholarship fund for a cause that was dear to them.
  • Raise money for a nonprofit or charity that aligns with your loved one’s values.

A well-defined purpose ensures that the foundation reflects the essence of the individual you are honoring, creating a lasting impact.

2. Learn How to Start a Foundation 

Once you have clarity on the purpose of the foundation, the next step is to understand the legal and logistical requirements for establishing a nonprofit or memorial fund. Key considerations include:

• Legal Requirements: [see table below]
  • Navigate specific tax laws and regulations.
  • File necessary paperwork to qualify as a tax-exempt organization.
    • To learn more about the legal requirements for establishing a memorial foundation as a 501(c)(3) nonprofit, you can refer to the specific guidelines provided by the IRS. According to the IRS, any organization seeking tax-exempt status under section 501(c)(3) must be organized and operated exclusively for exempt purposes, such as charitable, religious, educational, or scientific activities. This includes private foundations, which are classified differently based on their funding sources and operational structure​(IRS).
• You can find detailed information on the requirements and procedures for starting a 501(c)(3) nonprofit, including how to apply for tax-exempt status, on the IRS's official page for Exempt Purposes - Section 501(c)(3)​(IRS). This page provides comprehensive guidance on how to ensure your organization meets all the necessary criteria and maintains compliance with federal tax laws.
• For additional details on private foundations, you can visit the IRS page dedicated to Private Foundations which outlines specific distinctions, filing requirements, and operational guidelines​(IRS). This resource will help you understand the different types of foundations and how to properly establish and manage them in accordance with IRS regulations.
• Tax Benefits:
  • Ensure that donations made in memory of your loved one are eligible for tax deductions.
  • Confirm that the foundation can legally accept contributions.

For detailed information on the steps and procedures required to ensure that donations made in memory of your loved one are eligible for tax deductions and that your foundation can legally accept contributions, you can refer to the following resources:

1. Exemption Requirements for 501(c)(3) Organizations: This page provides an overview of the criteria that organizations must meet to qualify for tax-exempt status under section 501(c)(3) of the Internal Revenue Code. This includes organizational and operational tests, as well as compliance with IRS regulations. More details can be found here​(IRS).
2. How to Apply for 501(c)(3) Status: This resource outlines the process for applying for tax-exempt status using Form 1023 or Form 1023-EZ, including eligibility requirements and necessary documentation. It provides a step-by-step guide to help organizations navigate the application process successfully. You can access this information here​(IRS).
3. IRS Publication 4220: Applying for 501(c)(3) Tax-Exempt Status: This publication offers a comprehensive guide to establishing a 501(c)(3) organization, including detailed instructions on compliance, filing requirements, and maintaining tax-exempt status. It’s an essential resource for understanding the legal aspects of setting up and managing a charitable foundation. You can download it here​(IRS).
4. Charitable Contribution Deductions: This page explains the rules for income tax deductions for charitable contributions made by individuals and businesses. It includes information on qualifying contributions, percentage limitations, and special rules for deductions. For more details, visit this link​(IRS).

These resources will guide you through the necessary legal steps to ensure your foundation can operate in compliance with IRS regulations and offer tax-deductible benefits to donors.

Legal Requirements for Starting a Foundation

Establishing a Private Foundation

A private foundation is typically established by an individual, family, or corporation as a means to manage their charitable giving. Unlike public charities, private foundations usually do not raise funds from the public. Instead, they are funded primarily by a single source, such as a family or a corporation. Private foundations often focus on providing grants or scholarships to other organizations or individuals, supporting causes that align with the donor's philanthropic goals.

Key Characteristics:

• Funding: Private foundations are funded by an individual, family, or corporation.
• Grants and Scholarships: They can issue grants or scholarships to support various causes, making them effective vehicles for long-term charitable giving.
• Management and Control: Founders have significant control over how funds are distributed and what causes are supported.
• Compliance Requirements: They must file annual tax returns (Form 990-PF) and adhere to strict rules regarding self-dealing, minimum distribution, and other regulatory requirements set by the IRS.

501(c)(3) Nonprofit Organizations

A 501(c)(3) nonprofit organization is a tax-exempt entity established for charitable, educational, religious, scientific, or literary purposes, among others. These organizations are more commonly known as public charities and can solicit donations from the public. They often engage in direct charitable activities, such as running programs, offering services, or advocating for specific issues.

Key Characteristics:

• Public Support: They typically receive funding from diverse sources, including individual donations, grants, and fundraising events.
• Direct Charitable Activities: These organizations may directly operate programs and services that benefit the community.
• Tax Benefits: Donors to 501(c)(3) organizations can usually deduct their contributions from their taxable income, and the organization itself is exempt from federal income tax.

Differences Between a Private Foundation and a 501(c)(3) Public Charity

1. Source of Funding:
   • Private Foundation: Primarily funded by an individual, family, or corporation.
   • 501(c)(3) Public Charity: Funded by diverse sources, including the general public, grants, and fundraising events.
2. Activities:
   • Private Foundation: Primarily provides grants to other organizations or individuals.
   • 501(c)(3) Public Charity: Engages in direct charitable activities, such as running programs or offering services.
3. Regulatory Requirements:
   • Private Foundation: Subject to additional rules, such as minimum distribution requirements and restrictions on self-dealing. Must file Form 990-PF annually.
   • 501(c)(3) Public Charity: Must demonstrate public support through diverse funding sources. Typically files Form 990 or Form 990-EZ annually.
4. Control and Flexibility:
   • Private Foundation: Greater control over how funds are allocated, but more stringent regulations.
   • 501(c)(3) Public Charity: More flexibility in operational activities, but less control over funding sources and distribution.

Additional Paperwork and Systems for a Private Foundation

If you decide to establish a private foundation, you will need to handle additional administrative tasks compared to a public charity:

• Tax Returns: You will need to file Form 990-PF annually, which details financial information, grants awarded, and administrative expenses.
• Donor Management Systems: If the foundation accepts donations from multiple sources, implementing a donor management system can help track contributions and ensure compliance with IRS regulations.
• Grant Administration: Establishing processes and guidelines for reviewing and awarding grants, including criteria for recipient eligibility and reporting requirements.

By understanding these differences, you can determine which type of organization best suits your philanthropic goals and ensure compliance with IRS regulations.

For more information on establishing a private foundation or a 501(c)(3) public charity, you can visit the following resources:

• Exemption Requirements for 501(c)(3) Organizations​(IRS))
• How to Apply for 501(c)(3) Status​(IRS)
• IRS Publication 4220: Applying for 501(c)(3) Tax-Exempt Status​(IRS)
  

3. Set Up a Memorial Fund

A memorial fund is a deeply personal way to also honor the memory of a loved one, allowing friends, family, and even strangers touched by their life to contribute to a cause that resonates with their legacy or to give much needed bereavement funds to the family for hardship and burial cost. Instead of using generic crowdfunding platforms, consider partnering with hersmile.org, a nonprofit dedicated to supporting those walking the grief journey. Unlike other platforms, hersmile.org offers ongoing support and walks alongside the family, friends and community coping with the loss of their loved one, providing both emotional and financial support.

Setting up a memorial fund through hersmile.org allows you to build a financial base for long-term projects, such as scholarships or ongoing charitable donations, while simultaneously providing your loved ones with the resources they need to navigate their grief. This fund can support not only immediate expenses like funeral costs but also broader, more enduring goals such as creating a memorial scholarship or sustaining a nonprofit that continues to give back in honor of your loved one.

4. Fundraising for Your Memorial Foundation

Fundraising is essential to the success and sustainability of a memorial foundation. Whether you’re raising funds to help with immediate expenses, establishing a scholarship, or supporting a nonprofit, it’s important to organize campaigns that connect with people on a personal level. With hersmile.org, you have access to a supportive community and a platform designed to help families through their grief journey while making a positive impact.

Fundraising Tips for Memorial Foundations

• Share the Story: Every memorial foundation carries the story of a cherished life. Share the story of your loved one openly and authentically, using social media, the hersmile.org platform, and local community events. When people feel a personal connection, they are more likely to contribute and support your cause.
• Use Online Fundraising Tools: Through hersmile.org, you can create customized campaigns to accept donations directly to your memorial fund. This simplifies the process for donors and helps you manage contributions effectively, all while being part of a supportive community that understands the grief journey.
• Host Events: Consider organizing memorial events, charity auctions, or walks in honor of your loved one. These events not only help raise money but also provide an opportunity for people to come together, celebrate their life, and support the foundation's mission.
• Establish Donor Programs: Create donor programs where individuals can contribute annually or on a monthly basis. This ensures that the foundation has a steady stream of income, allowing you to continue its mission over time.
• Incorporate Memorial Contributions: When families are dealing with the heavy costs of funerals and services, many choose to ask for memorial contributions in lieu of flowers or gifts. Hersmile.org offers a way for friends and family to make meaningful contributions that support the foundation and honor the memory of your loved one.

Choosing hersmile.org as your platform not only provides a practical means of raising funds but also offers the emotional and community support that other fundraising sites may lack, ensuring that you and your loved ones are not alone on this journey.

Starting the #hersmile Nonprofit in memory of my daughter Jenna has been one of the most meaningful ways for me to live my love for her out into the world. It has allowed me to channel the immense grief I feel into something purposeful, creating a space where her spirit, smile, and love for life continue to touch others in a profound way. Through #hersmile, Jenna’s light is not only remembered but also actively shared, transforming her story into a beacon of hope and strength for those navigating their own journeys of loss.

Creating a memorial foundation is more than just honoring the memory of a loved one; it’s a way to keep their essence alive, influencing lives and communities in a positive way. Every scholarship awarded, every charitable grant given, and every community program supported through #hersmile reflects Jenna’s beautiful spirit and the impact she had on this world. It has been deeply healing for me to know that Jenna’s love and inspiration are still making a difference, guiding others through their darkest days and offering support and compassion.

In this challenging journey, I have learned that no one has to walk the path of grief alone. Organizations like hersmile.org offer not only a platform for honoring loved ones but also a community of support and understanding. Together, we can turn grief into a force for good, creating a legacy that not only celebrates the lives we have lost but also uplifts those who need it most. This is how Jenna’s light continues to shine—through every act of kindness and support extended in her name, leaving an indelible mark on the world and my heart.