The Form 990-PF is often the public face of your foundation. It is publicly available at www.guidestar.org. Embedded in the Form 990-PF is a series of oft-neglected questions that give you an opportunity to explain how your charitable activities advance the foundation’s mission and vision. Instead of using the two or three lines provided on the... Read More
Although attending fundraisers and similar events may not seem like a benefit to you, the Internal Revenue Service (IRS) may see it differently: as self-dealing, an act in which a trustee, staff member, or other “disqualified person” receives direct, personal benefit. To avoid falling afoul of laws to prevent self-dealing, many private foundation boards establish... Read More
Even for nonprofit foundations with few or no employees, the risk of litigation is real—and rising. Why D&O insurance? Once assumed to be costly and once excluded from many nonprofit budgets as a result, D&O liability insurance has evolved into a broad, affordable, and important form of coverage for any foundation. Even if you have... Read More
Under the Further Consolidated Appropriations Act of 2020, private foundations are now subject to tax at a flat rate of 1.39% of their net investment income, effective for taxable years beginning after Dec. 20, 2019. Private Foundations are also subject to the requirement of section 4942 that a minimum of 5% of the fair market... Read More
Funders can engage in advocacy, can fund advocacy, and can encourage grantees to engage in advocacy, with exceptions involving lobbying and electioneering. The two types of lobbying are direct lobbying, communicating with legislators to express a view about specific legislation, and grassroots lobbying, asking the public to communicate with legislators to express a view about... Read More
The Northwest Area Foundation (NWAF) of Minnesota was sued in November 2002 by a potential grantee located in the Yakima Valley of Washington State. NWAF, a grantmaking foundation established in 1934, was organized to help communities throughout an eight-state region reduce poverty. It makes grants totaling approximately $18 million per year. Under its Community Ventures... Read More