Legal Compliance Guidance

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All information on this website, and all publications, articles, email correspondence, and telephone consultations provided by Council attorneys and legal staff are intended for informational purposes only and not as part of an attorney-client relationship. Council attorneys are not licensed in every state and cannot provide legal representation. The information is not a substitute for expert legal, tax, or other professional advice tailored to your specific circumstances and may not be relied upon for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code. Council members may email legal@cof.org with inquiries and for more information.

Displaying 1 - 16 of 192 results

Disaster Relief Funds in the Community

Legal Compliance Guidance
When disaster strikes a community, disaster relief funds administered through community foundations offer an efficient way to quickly get aid to those who need it. But it’s important to understand how the Internal Revenue Code requires these charitable funds be used, which can vary depending on the…

Disaster Relief Funds for Corporate Employers

Legal Compliance Guidance
When disaster strikes and employees are affected, employers may provide financial assistance to their employees through corporate foundations and employer-sponsored funds at community foundations. The legal framework governing employee hardship assistance programs can vary, though, depending on the…

Court Cases That Have Been Decided or Dismissed

Legal Compliance Guidance
The Council is committed to helping our members stay informed about litigation that may have an impact on the philanthropic sector. This page lists cases that we tracked through their conclusion, whether they were decided in court or by settlement. Please see our list of ongoing cases we are…

Guidance Memorandum for Foundations for Interacting with Immigration Officials on their Property

Legal Compliance Guidance
Prepared by Leon Fresco, Partner at Holland & Knight LLP for the Council on Foundations | Finalized February 2026Download this guidance as a PDF.BackgroundThe purpose of this memo is to provide guidance to foundations for interacting with immigration agents on their property. Although there was…

Accounting for Assets Held at Nonprofits

Legal Compliance Guidance
Download this guide as a PDF Nonprofit entities place their investments with community foundations (the Foundation) for a variety of reasons, including investment expertise, efficiencies, and access to planned giving advice, and services. As nonprofit entities seek to place their assets and…

Accounting for Assets Held at Community Foundations

Legal Compliance Guidance
Download this guide as a PDF Nonprofit entities place their investments with community foundations ("the Foundation") for a variety of reasons, including investment expertise, efficiencies, and access to planned giving advice and services. As nonprofit entities seek to place their assets and…

End of Year Legal Office Hour - 2025

Legal Compliance Guidance
As we approach the end of 2025, community foundations face a range of questions related to gift acceptance and donor stewardship. This is a recording of an open office hours session where the Council’s Legal Resources team discussed key year-end topics and answered audience questions.

​​Potential Implications of Funding Protest Activities​

Legal Compliance Guidance
Developed for the Council on Foundations by Christopher J. Armstrong, Partner at Holland & Knight The Current Environment Foundations are under increasing political scrutiny regarding their relationships with organizations that have engaged in protests, especially in situations where…

Actions Upon Potential Arrest of a Senior Leader at a Community Foundation 

Legal Compliance Guidance
Developed for the Council on Foundations by Christopher J. Armstrong, Partner at Holland & Knight  In the event that a senior leader of a community foundation or similar organization is arrested at a First Amendment protected protest, preparing for an immediate response is essential to…

Expanded Legal Support - Center for Community Foundations

Legal Compliance Guidance
After listening, research, and consultation with the field, the Council on Foundations is expanding legal support to help community foundations prepare for—and respond to—threats that could shape the future of the sector.  The resources presented on this page provide additional analysis,…

Responding to a Congressional Inquiry

Legal Compliance Guidance
Developed for the Council on Foundations by Christopher J. Armstrong, Partner at Holland & Knight Congress’s power to conduct inquiries, including information requests, the issuance of subpoenas, and public hearings has long been recognized by the courts as part of Congress’s power to…

Permissible Exempt Purposes Under 501(c)(3)

Legal Compliance Guidance
This page outlines the range of purposes that qualify an organization for tax exemption under section 501(c)(3) of the Internal Revenue Code. It explains how the IRS and courts interpret key terms — especially "charitable" — and how those interpretations shape eligibility. Permissible Exempt…

Summary of Ways and Means Chairman's Mark

Legal Compliance Guidance
On May 9, 2025, the House Ways and Means Committee released initial legislative text of the tax bill to be marked up this week. The Committee is expected to release a revised and more substantive bill Monday afternoon, so the provisions below could be modified and are subject to change. Individual…

Self-Defense Communications Regarding the Section 4940 Excise Tax on Net Investment Income

Legal Compliance Guidance
Self-Defense Exception: A legislative proposal to modify the private foundation excise tax on net investment income under IRC section 4940 would qualify as a self-defense issue, because it affects a private foundation’s duties. Private foundations may therefore communicate with the legislature, its…

Losing Tax-Exempt Status

Legal Compliance Guidance
It is extremely rare for an organization to lose its tax-exempt status. When it happens, it's typically the end result of a three-step process: (1) The IRS conducts an examination of the tax-exempt organization; (2) the IRS issues a letter to the organization proposing revocation; then (3) the…

Risk Management Resources

Legal Compliance Guidance
Internal Risk Management for FoundationsIn response to the ongoing changes to the legal and policy landscape, it has become increasingly important for foundations and charitable nonprofits to engage best practices for mitigating their potential legal and operational risks. We worked with outside…

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