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 161 - 171 of 171 results

Accepting Tickets from Grantees

Legal Compliance Guidance
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.

Public Disclosure Requirements for Foundations

Legal Compliance Guidance
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…

Compensate Your Board? Legal and Ethical Considerations

Legal Compliance Guidance
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…

Executive Compensation Best Practices

Legal Compliance Guidance
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…

Reporting and Classification of Assets Under UPMIFA

Legal Compliance Guidance
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…

Legal and Accounting Challenges of Underwater Endowment Funds

Legal Compliance Guidance
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…

Investment Management Practice Tips and Resources

Legal Compliance Guidance
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…

Working with a Donor's Investment Manager

Legal Compliance Guidance
“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…

IRS Audit Survival Tips

Legal Compliance Guidance
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…

Explanation of Proposed Treasury Regulations: Reliance Standards for Making Good Faith Determinations of Equivalency Determinations

Legal Compliance Guidance
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…

Analysis of Type III Supporting Organization Regulations Issued December 28, 2012

Legal Compliance Guidance
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…

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