Bank One Installs System To Manage The Private Foundation Process

Bank One has unveiled a technology solution for eliminating the cumbersome steps in setting up private foundations, a favorite tool of wealth management.

The Chicago-based institution is offering Private Client Foundation to its philanthropically-inclined, high-net-worth clients as a planned-giving and tax management option. The solution, which employs Web-based technology from Foundation Source, a Norwalk, Conn.-based philanthropic services company, automates the process of providing and administering private foundations. It reduces the expense, complications and back-office burden traditionally associated with private foundations, making them a viable option for a much broader audience. Foundation Source partners with financial institutions, including banks, brokerage and insurance companies, who in turn offer the product to their affluent clients.

The service makes starting and operating a private charitable foundation much easier and less expensive than the cumbersome traditional process, according to William H. Brownson, managing director of philanthropic services at Bank One. "It enriches relationships with affluent clients, while providing an appealing financial planning vehicle with which to reach out to a larger segment of high-net-worth prospects."

In preparation for the launch, Foundation Source and Bank One worked closely to develop a complete suite of training courses and sales materials. Other marketing efforts include seminars targeted to centers of influence, such as attorneys and CPAs, as well as seminars targeted at mid-sized business owners.

Benefits of a private foundation through Foundation Source include: streamlined set-up process; immediate tax deduction and avoidance of capital gains taxes on appreciated assets; professional administration to manage the back office; reduced administrative and operational costs; compliance oversight; complete control over granting process and easy access to information from any Internet-connected computer.