All Resources

What do you do when a grantee—or potential grantee—asks someone on your board or staff to sit on their board? Does such a request constitute a conflict of interest? Are there times when such a situation can actually benefit one or both of the organizations involved? Let’s look at some of the pros…

In the May/June 1998 issue of Foundation News & Commentary, Jane Nober wrote "That's the Ticket"  about using foundation funds to pay for tickets to fundraising events. Six years later, questions about tickets and other tangible benefits paid for by the foundation are still among the most…

Accepting and using tickets and other tangible benefits of more than minimal value raises questions for foundation managers. Review the general Tax Code rules to learn what is acceptable.

Every organization exempt under Section 501(c)(3) of the Internal Revenue Code is required to disclose certain information to the public: The organization’s exemption application, Form 1023, is subject to public disclosure, along with any documents supporting the application and any letters from…

Can we pay our board members? Should we? The issue of whether to pay foundation board members is always a controversial topic. Expect the media, regulators, general public, and even your grantees to scrutinize the decisions you make. What is legal? Though the rules may vary slightly by type of…

The Internal Revenue Code provides excise tax penalties that can be imposed by the Internal Revenue Service whenever unreasonable or excessive compensation is paid to high-level employees of charitable organizations. Over and above any legal requirements or public scrutiny, good stewards of…

This memorandum considers whether adoption of the Uniform Prudent Management of Institutional Funds Act (UPMIFA) requires changes to existing guidance regarding the reporting and classification of assets held by community foundations. Current guidance is incorporated in a 1997 memorandum, Report on…

By Susan E. Budak and Susan N. Gary The widespread adoption of the Uniform Prudent Management of Institutional Funds Act (UPMIFA) across the country has already been of great help to charities, in part because the financial markets collapsed just months after the uniform act was approved. Most, if…

Practice 1. The board (and investment committee and staff, if any) of a foundation should understand and fulfill their respective fiduciary responsibilities and duties under applicable law and the governing documents of the foundation and stay informed regarding any relevant changes in law, duties…

“If I create a fund at the community foundation, can my investment manager still manage the funds?” You may have already come across a donor that asked this question. Such a donor is essentially requesting that the fund they create be invested outside of the foundation’s investment pool(s). While…

Things to do NOW – “An Ounce of Prevention...” Review your organization’s activities – seems simple and basic, but the IRS will be certainly asking about them and the audit context is not the time to learn about someone’s pet project for the first time. Do you have documentation to establish the…

September 24, 2012 The Department of Treasury and the IRS issued proposed regulations applicable to private foundations seeking to make grants to foreign organizations using equivalency determinations. The guidance broadens the range of professionals on whose written advice a private foundation…

On December 28, 2012, the Treasury Department and IRS issued final and temporary regulations on Type III supporting organizations. Simultaneously, proposed regulations were issued regarding payout for Type III non-functionally integrated supporting organizations. This analysis focuses on the areas…