It's the same principal when you consider your own bequest. After providing for those specific charities to which you feel a commitment, it's a good idea to give someone else the authority to make judgments -- just as you do -- within parameters that you set. It's fine to provide negative guidance, as well. For instance, "Under no circumstance will my fund support x, y or z causes or specific charitable organizations."

Why choose a community foundation board to make these decisions for you? Well, it's fine to ask children or grandchildren to serve in this capacity during their lifetimes, but beyond that your descendants don't/won't know you any better than an independent body like a community foundation board. There is no reliable process for choosing great grandchildren through great great great grandchildren and beyond that gives any guarantee of their honesty or good judgment. It's fine to choose a financial institution, until you get to the point where nobody there knew you and the financial institution gets merged four times and has its home office in another state or country.

A community foundation by definition has a board of leaders who are of your community and who are broadly representative of community interests. They know the community's needs. Their actions are audited, and to use the popular expression today, transparent. They have the fiduciary responsibility to adhere to your fund letter for all time. In my opinion, this option represents your best chance in an admittedly imperfect world to ensure that your legacy performs in the manner you would hope and expect.

"But, Thalhimer," you say, "you're biased. You work for a community foundation." True enough. But I work there by choice and after having observed for many years how other charitable organizations work from the perspectives of donor, board member and staff. I have seen charitable organizations invest their endowment in CD's and raid it periodically to offset operating deficits. I have seen charities fail and merge. I have seen executive directors with poor ethical standards send worthwhile charities into near bankruptcy. I have seen purportedly strong charities fail.

I have yet to witness these problems in community foundations, and I feel their structure is superior. This is not to say that all community foundations are perfect by any stretch of the imagination. However, the ethical standards are very high, the board members are generally chosen for the right reasons, and outside scrutiny is strong compared to other forms of charitable organizations.

Cross-posted from Bobby's Blog at the Community Foundation Serving Richmond and Central Virginia.