Private foundations are subject to several sections within the Internal Revenue Code (IRC). The following list is not comprehensive but addresses eight sections that will guide foundation managers throughout the life of the foundation: Section 4940 imposes an annual excise tax on a private foundation’s net investment income. Foundations will need to pay taxes on... Read More
How do foundation trustees become a vibrant, unified team with members who are moving in the same direction? How do they become a team that respects one another’s values while passionately sharing a clear and common vision? Developing a mission statement can help trustees focus. It’s a challenge to know one’s own values and to... Read More
Although all 501(c)(3) organizations are organized and operated exclusively for religious, charitable, or educational purposes, there are two main types of organizations that fall under this classification: public charities and private foundations. Organizations that qualify as public charities do so by having significant public influence, such as a third or more of their income’s coming... Read More
Generally, states have similar laws regarding foundations. It typically is recommended that you incorporate in the state where the main office will reside so that you only need to file paperwork with one state. Certain states, including California and New York, maintain minor limitations and/or requirements on private foundations, which you should understand before incorporating... Read More