Q&A Archive

Do foundations change investment advisors often?

January 4, 2022 Kim Adkinson / General Questions, Grantmaking Questions

Including clear procedures for monitoring, evaluating, and changing your investment advisors in your investment policy statement (IPS) is essential to fulfilling fiduciary responsibilities. Investment advisors can include external consultants, an outsourced chief investment officer (OCIO), and/or investment managers, each playing a crucial role in supporting the foundation’s financial goals. Establishing Accountability and Best Practices To... Read More

How can I let the public know my foundation gives grants?

November 30, 2021 Hannah Smith / Grantmaking Questions

Ways to let the public know you give grants Here are some ideas for foundations—new or well-established—looking to expand program areas or grantseeker pools: Distribute your mission and guidelines on your website or at local nonprofit events. Talk with other foundations that have similar program interests. They can sometimes refer grantees to you. Ask if... Read More

When should a foundation have a grant agreement?

November 16, 2021 Hannah Smith / Grantmaking Questions

It’s always a good policy to have a grant agreement with grant recipients. Not for when the grant goes well, but rather, for when it doesn’t. With a grant agreement in place, it is easier to: Monitor a grant for performance according to the application See if anticipated outcomes are achieved Receive reports from the... Read More

What is discretionary grantmaking?

November 16, 2021 Hannah Smith /

Discretionary grantmaking is a flexible approach that allows certain individuals—typically board members, and sometimes committee members, family members, or staff—to direct a portion of the foundation’s grant dollars toward organizations or causes they personally support. This type of grantmaking gives those individuals the autonomy to make funding decisions based on their personal interests, knowledge, or... Read More

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

November 16, 2021 Hannah Smith / General Questions

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

Where can I find the schedule and registration for the 2021 Virtual Annual Conference?

October 6, 2021 Hannah Smith / General Questions

Our community’s Annual Conference is designed specifically for and by lean funders—those who give with few or no staff. We are a genuine community that supports and inspires each other even through difficult times. Exponent Philanthropy is where you can let your guard down and talk about the challenges and issues affecting the communities and... Read More