Regulatory vs. Voluntary Annual Reports Some states require foundations to file an “annual report” alongside their Form 990-PF to ensure compliance with their charitable purpose. These reports follow state-mandated templates and are distinct from the voluntary annual reports many foundations create for outreach and communication. Why Create a Voluntary Annual Report? A voluntary annual report... Read More
Meeting Frequency Most states require foundation boards to meet at least once a year, though some may mandate more frequent meetings. Check your state’s requirements and schedule additional meetings as needed to effectively oversee your foundation’s work. Other Key Meeting Requirements Notice: States set rules for how much advance notice to give and in what... Read More
Effective administration requires aligning tasks with the foundation’s mission and ensuring efficient operations. Key components include: Clear Roles and Responsibilities: Assign tasks in areas like governance, grantmaking, and financial management to specific individuals or teams. Strong Record-Keeping Systems: Maintain accurate records for grants, expenses, and board decisions to ensure compliance and transparency. Thoughtful Use of... Read More
To create healthy board dynamics and maintain engagement, foundations should: Encourage Diverse Perspectives: Promote open dialogue and embrace differing viewpoints. Address Disruptive Behaviors: Use clear communication and establish a statement of culture. Hold Regular Retreats: Focus on strategic planning and relationship building. Engage Members Actively: Assign meaningful roles, organize site visits, and invite external speakers... Read More
Completing Form 990-PF is a demanding process, and private foundations often encounter two significant challenges: time commitment and complexity. Time Commitment: The IRS estimates that it takes over 200 hours to fully prepare and file Form 990-PF. This includes learning relevant laws (60 hours) and recordkeeping tasks (140 hours). For smaller foundations with limited staff,... Read More
Private foundations can grant money to individuals in four main ways. Each method has different recordkeeping and reporting requirements. Here’s a simplified overview: Scholarships and Loans Through Intermediaries: Grants can be made via public charities, like schools or universities. The foundation can set eligibility criteria (e.g., age, income, field of study). The intermediary manages the... Read More