Board policies work in tandem with a foundation’s bylaws or trust document to create the foundation’s structure. Bylaws or the trust document are legally binding and based in state law; policies are also considered binding, but they are less likely to be backed by force of law and are easier to amend (e.g., usually by... Read More
Good recordkeeping throughout the year will make it easy to compile your annual report. Here are some tips: Start a folder at the beginning of the year. Use it to save lists of grants, speeches by board members and staff, newspaper clips, news releases, fund reports, photos, and so on. Read colleagues’ annual reports for... Read More
From a tax law perspective, a private foundation may pay “reasonable and necessary” administrative expenses. These also count toward its annual distribution requirement, without subjecting the foundation or its managers to a penalty tax. Administrative expenses must be (a) related to the accomplishment of the foundation’s charitable purposes, (b) related to its investments, or (c)... Read More