Next generation philanthropy. No matter how you define the next generation, many foundations struggle to engage this subset into their philanthropy. “The most important thing is to treat young people as equals at the board table,” says Susan Price from the National Center for Family Philanthropy. “They don’t know everything the older generation knows, but... Read More
A private foundation must make annual charitable expenditures, called qualifying distributions, equal to at least 5% of the fair market value of its previous year’s endowment. Thus, a foundation with average assets of $5 million in fiscal year 2022 must make roughly $250,000 of qualifying distributions by the end of its next fiscal year, or December... Read More
An investment policy statement (IPS) is the starting point and bedrock of a foundation’s investment strategy. It constitutes a road map for how the foundation plans to achieve and support its stated mission and giving goals through its investment strategy. A foundation’s IPS is a guiding force for the organization, so in the beginning, expect... Read More
Program related investments (PRI) are loans, loan guarantees, or other types of investments made by a foundation to support a charitable purpose. They’re also a powerful and flexible tool to add to your foundation’s toolkit. A PRI can count toward a foundation’s distribution requirement if it meets the following federal criteria: They serve a charitable... Read More
Choosing which of the many worthy causes to fund is difficult, which begs the question: How bad is it to give to multiple good causes? The answer: Not bad at all. However, when we approach charitable giving another way—How can we achieve the most with our resources?—the answer is different. That’s because getting focused is... Read More
What’s on the agenda for your board this year? Are you covering the bases of good governance? Maintaining a checklist of annual to-dos can be an easy way to keep your foundation up to date and on-track. A checklist for your board can serve as a reminder of your legal obligations and governance best practices.... Read More