The IRS doesn’t list every possible foundation asset, but it broadly defines an asset as anything the foundation owns, controls, or receives for its benefit. That definition is wider than most people expect; it goes well beyond the investment portfolio. Common examples include: Cash & cash equivalents – checking, savings, money-market funds Investments – stocks,... Read More
Start with the self-dealing rules. When a private foundation pays for a sponsorship or receives complimentary tickets, those tickets become foundation assets. If a board member, officer, substantial donor, or family member (all “disqualified persons”) uses them for food, entertainment, or marketing perks, the IRS may treat it as self-dealing and impose excise taxes. 3... Read More
Yes. Membership dues qualify as an allowable administrative expense and may be included in the 5% payout calculation for private foundations. How To Record It Treat the dues as an administrative expense, not a grant. Grants must be “no-strings-attached,” meaning the foundation cannot receive any benefits in return. Classifying dues as a grant would bar... Read More
Managing your foundation’s finances doesn’t have to be complicated. The practices below can help you stay organized, safeguard your assets, and ensure funds are used appropriately. Use one operating bank account.If you make grants only once or twice a year and have few bills, consolidating transactions in a single account keeps bookkeeping simple. Match cash... Read More