A well-written annual report shares your work, encourages others to set up foundations or increase their giving, helps suitable applicants find you, and helps the public and lawmakers learn about the foundation—and see that it is a responsible and accountable organization. Annual reports often include: Year and name of the foundation A brief history of... Read More
Discretionary grantmaking is the practice of allowing board members and, in some cases, committee members, family members, or staff to direct a portion of grantmaking dollars to organizations of their choice. Foundations use discretionary grants in a variety of ways and for many reasons. Read considerations when creating a discretionary grantmaking policy >> Read additional... Read More
A mission statement is a short, written declaration about why you are engaging in philanthropy or, if your giving structure is a foundation, why the foundation exists. Mission statements are powerful because they are heartfelt, simple, and easily communicated. A mission can help you: Make the best use of your resources by focusing grants and activity on... Read More
There are numerous ways to determine the endowment spending rate for a nonprofit. Most nonprofits are familiar with less complex approaches that include spending income, assigning a prespecified percentage of the beginning market value, simply deciding on a spending rate, and using the Internal Revenue Service minimum required payout of 5% for certain private foundations.... Read More
Although private foundations are exempt from the federal income tax, each private foundation must pay an annual excise tax on its net investment income. The Internal Revenue Code also contains five provisions that impose two-tier excise taxes on private foundations that, and disqualified persons who, engage in certain prohibited acts. Learn more here >> Read More
Less than one-quarter of 1% of all tax returns filed by private foundations are examined by the Internal Revenue Service. Yet certain states have seen an increase in attorney general inquiries (i.e., audits) into the operations of private foundations and components of the Form 990-PF, which usually accompanies a state filing. Attorney general audits can... Read More