Legal Compliance Guidance

Individual Retirement Accounts (IRA) Gifts and Qualified Charitable Distributions (QCDs) May a donor make a QCD from an IRA to their donor-advised fund (DAF) or someone else’s DAF? What happens if a donor chooses to transfer money from their IRA into a DAF? Do we have to tell them they have…

What is Section 1981? Does the outcome of this case set a new standard for grants that are race-based or race-conscious? If so, why? How will this settlement impact a foundation’s ongoing commitment to DEI within their grantmaking? Will the settlement impact foundations collection of…

With Congress and the media focusing on corporate governance and foundation administration, now is the time to make sure that all grantmakers have a strong conflict of interest policy in place. Both private foundations and public charities (such as community foundations) should have clear…

Editable conflict of interest policies for staff and board members. This sample document is being provided for informational purposes and is not to be shared without the permission of the Council on Foundations. Use of the sample document does not create an attorney-client relationship, and the…

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…

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,…

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…

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…

Internal Risk Management for Foundations In 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…

What counts as a qualifying distribution? A foundation can meet the minimum-payout requirement with any expenditure that meets the definition of a “qualifying distribution.” In short, the law states a foundation must have qualifying distributions equal to approximately 5%, not a “payout” of 5%. (…

Community Foundations and other public charities may engage in an insubstantial amount of lobbying as part of normal operations. But what are the rules around engaging in self-defense?   Internal Revenue Code Section 4911(d)(2)(C) provides public charities with an exception to the…