Q&A's Archive - Exponent Philanthropy

Q&A Archive

What are the key components of effective foundation administration?

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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

How can a foundation board foster better dynamics and engagement among its members?

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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

What are the most common challenges in completing Form 990-PF?

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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

What are the rules for foundation grants to individuals?

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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

We want to support a local church, but it can’t provide proof of tax-exempt status. What should we do?

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Churches, religious organizations, and ministers have special tax laws recognizing their unique status and First Amendment rights. According to the IRS, churches that meet the requirements of Section 501(c)(3) are automatically tax-exempt and do not need to apply for formal recognition from the IRS. Even if your local church doesn’t have documentation, you can still... Read More

What do the current demographics of lean foundation boards and staff reveal about diversity in the sector?

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The demographics of lean foundation boards and staff show significant disparities in diversity compared to the broader U.S. population. Foundation Boards The 2024 Foundation Operations and Management Report reveals White individuals, who make up 59% of the U.S. population, are overrepresented on foundation boards at 89%, while BIPOC individuals, representing 41% of the population, account... Read More