The Shepherds Foundation Inc.

The Shepherds Foundation Inc. is a family-controlled private foundation headquartered in Franklin, Tennessee, founded in 2001 and led entirely by the Nacarato family: Michael J. Nacarato Jr. (President), Teresa A. Nacarato (Secretary), and Michael J. Nacarato IV (Director), all serving without compensation. With zero paid staff and all-volunteer governance, this is a highly personal grantmaking operation where decisions reflect family values rather than institutional criteria or professional program strategy.

The foundation's stated mission — "direct support to needing families" — is realized through three distinct program tracks: (1) direct financial assistance to individuals and families in need, (2) donations to Nashville-area charitable organizations, and (3) development of an art museum. The arts infrastructure program is an unusual priority for a foundation of this scale and suggests a longer-term vision that sets The Shepherds Foundation apart from typical social-service grantmakers.

The known grantee profile points strongly to a Catholic and broadly Christian faith-based orientation. The Roman Catholic Diocese of Nashville received $710,000 for a Legacy Campaign in 2024, and Fourteenth Avenue Baptist Church received $20,000 for operating support the same year. Organizations with faith-based missions or those serving Nashville's Catholic and Baptist communities have a structural advantage here, even though the foundation's formal guidelines do not specify a religious preference.

No formal application process exists. The foundation is listed in public databases as accepting applications, but no instructions are published — a strong signal that unsolicited cold submissions from unknown organizations will not move forward. The pathway in is relationship-first: a warm introduction through the Diocese of Nashville, through Nacarato family networks, or through organizations already in the foundation's giving orbit.

First-time applicants should expect an informal, direct process: a personal letter or phone call, a brief conversation with family members, and — if the relationship develops — a modest initial grant in the $10,000–$25,000 range. The potential upside is significant; the foundation's largest gifts run to seven figures for trusted partners. Patience and relationship stewardship are the core competencies for navigating this funder.

The Shepherds Foundation's grantmaking shows dramatic year-to-year variation reflecting its character as a highly discretionary family foundation. Total annual giving has ranged from $4,462 (2015) to $3,865,347 (2024), spanning three orders of magnitude over the foundation's history.

The 2024 fiscal year represents a step-change in the foundation's ambition: 5 grants totaling $3,865,347, a 32-fold increase over 2023's $120,000 across 4 grants. The 2024 grant range was $10,000 to $3,105,347, with a median of approximately $20,000. This pattern reveals a dual-track strategy: one transformative anchor gift (the $3.1M grant, 80% of total giving) to a deeply trusted relationship, and several smaller grants ($10,000–$20,000) maintaining community ties.

Historical giving by year: - 2024: $3,865,347 (5 grants; range $10K–$3.1M) - 2023: $120,000 (4 grants; avg $30,000) - 2022: $206,901 total giving ($0 external grants paid — likely internal program expenses) - 2021: $207,738 total giving ($0 external grants paid) - 2020: $121,826 total giving ($0 external grants paid) - 2019: $129,520 total giving ($0 external grants paid) - 2014: $5,000 in grants - 2012: $84,500 in grants (26 awards; avg ~$3,250)

The near-absence of external grants from 2015–2022 — despite asset growth from $5.9M to $26.2M — indicates a prolonged accumulation phase, consistent with building toward a major initiative such as the art museum program. Known 2024 grantees include the Roman Catholic Diocese of Nashville ($710,000, Legacy Campaign) and Fourteenth Avenue Baptist Church Outreach Ministries ($20,000, operating fund).

Geographic concentration: Tennessee (Nashville metro) is the primary market, with Washington, DC and California noted as secondary areas in recent 990 data. Faith-based institutions — Catholic and Baptist — dominate the named grantee profile. No sector breakdown is disclosed, but human services and religious organizations are the evident priorities.

The Shepherds Foundation occupies a mid-tier asset position among private foundations, with $23.3M in net assets as of fiscal year 2024. The following peer foundations share a similar asset profile and Philanthropy & Grantmaking NTEE classification:

The Shepherds Foundation stands out among asset peers for its extraordinary 2024 payout ratio: distributing $3.9M on a $23.3M asset base equals approximately 17% of assets in a single year — more than three times the 5% minimum required for private foundations. This suggests either a major multi-year initiative driving concentrated distributions or a strategic portfolio rebalancing. Among similarly-sized family foundations in this asset class, such a high single-year payout is uncommon and indicates an unusually active grantmaking moment.

Unlike most peer foundations in this range, The Shepherds Foundation maintains a concrete programmatic agenda (art museum development) alongside traditional grantmaking, distinguishing it from pure holding-and-distributing vehicles. Grant seekers should not benchmark their requests against sector norms — this funder operates on a personal, relationship-driven model with grant sizes ranging from $10,000 to $3,105,347 in the same fiscal year.

The defining recent development at The Shepherds Foundation is its dramatic 2024 grantmaking expansion. The foundation's Form 990-PF, filed December 1, 2024, documents $3,865,347 distributed across 5 grants — a 32-fold increase from 2023's $120,000 total. The largest single disbursement was $3,105,347 to an undisclosed recipient, representing 80% of the year's charitable activity. The Roman Catholic Diocese of Nashville received $710,000 for its Legacy Campaign — the largest publicly-named grant in the foundation's documented history and evidence of a major institutional relationship. Fourteenth Avenue Baptist Church Outreach Ministries received $20,000 for operating support.

The foundation's net assets declined from $27.1M (2023) to $23.3M (2024), a reduction consistent with the high-distribution year and the fact that total expenses ($4,178,022) exceeded total revenue ($3,189,301). Revenue composition in 2024 was notably asset-heavy: 57.9% from asset sales, 22.6% from contributions, and 13.0% from dividends, suggesting active portfolio monetization to fund charitable distributions.

No leadership changes were identified. The Nacarato family has maintained identical governance — Michael J. Nacarato Jr. as President, Teresa A. Nacarato as Secretary, and Michael J. Nacarato IV as Director — since the foundation's founding in 2001. No press releases, media coverage, event announcements, or social media activity related to The Shepherds Foundation Inc. (Franklin, TN, EIN 62-1842982) were found for 2025 or 2026, consistent with the foundation's consistently low public profile.

Approaching The Shepherds Foundation Inc. requires setting aside conventional grant-seeking assumptions entirely. There is no RFP, no online portal, no published deadline, and no program staff. Every grant decision flows through Michael J. Nacarato Jr. and his family, making relationship and personal alignment the only real criteria.

Entry point: The most productive path to a first conversation is a warm introduction through Nashville's Catholic faith community — particularly through the Roman Catholic Diocese of Nashville or individuals connected to it — or through Fourteenth Avenue Baptist Church. Cold outreach is possible but unlikely to generate a response without this kind of social proof.

Timing: Initiate contact in late Q1 or Q2 (March–June). With no disclosed review cycle, early-year outreach gives the Nacaratos time to consider requests before year-end giving decisions. The 2024 surge in giving suggests they are in an active philanthropic phase that may continue through 2025.

Communication style: Write a one-page personal letter — not a grant proposal package — addressed directly to Michael J. Nacarato Jr., President. Lead with shared values: family welfare, community impact in Nashville, and faith-based service. Reference the foundation's language: "direct support to needing families" and "various Nashville-area charities." Close with a specific, modest request.

Right-sizing your ask: First-time applicants should target $10,000–$25,000 — the range consistent with the foundation's smaller relationship-maintenance grants. Seven-figure gifts go to institutions with years of trust-building. Use the first grant as a proof point, not a ceiling.

Arts angle: If your organization works in visual arts, cultural programming, or museum operations, say so explicitly. The foundation lists art museum development as an active program priority, yet no arts grantees have been publicly identified — making this a potentially underserved lane.

What to avoid: Do not submit a lengthy proposal package unsolicited. Do not engage a grant consultant without a genuine personal connection to the family. Do not ask for a multi-year or capacity-building grant in an initial request. The Nacaratos favor direct, human communication over institutional grant management processes.

Contact: Phone (615) 371-0030; website theshepherdsfoundation.org; mailing address 2435 Hidden River Lane, Franklin, TN 37069-6933.