November 2021 - Exponent Philanthropy

November 2021 Resources

What is discretionary grantmaking?

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. While the board is legally responsible for all discretionary grants, they’re generally approved without extensive review or discussion. Discretionary grants are truly made at... Read More

Can a private foundation count administrative expenses toward its annual distribution requirement?

From a tax law perspective, a private foundation may pay “reasonable and necessary” administrative expenses—and count them toward its annual distribution requirement—without subjecting the foundation or its managers to a penalty tax. These expenses must be (a) related to the accomplishment of the foundation’s charitable purposes, (b) related to its investments, or (c) payments of... Read More