Q&A's Archive - Page 27 of 44 - Exponent Philanthropy

Q&A Archive

Do you have advice on setting a foundation spending policy?

There are many ways to determine the endowment spending rate for a nonprofit. Most nonprofits are familiar with less complex approaches that include spending income, assigning a prespecified percentage of the beginning market value, simply deciding on a spending rate, and using the Internal Revenue Service minimum required payout of 5% for certain private foundations.... Read More

Can we recoup grant funds from a grantee?

It is difficult to recoup grant funds if your foundation did not have a signed grant agreement in place for the grant, with language that lays out what would happen if the grant is misused or not used according to plan.  Even when funders have a signed grant agreement, it can be difficult to recoup... Read More

May our foundation give grants to supporting organizations?

What Are Supporting Organizations? Supporting organizations are 501(c)(3) public charities classified under 509(a)(3). They are established to support one or more designated public charities (the “supported” organizations), such as universities, hospitals, libraries, schools, or specific nonprofits. Types of Supporting Organizations Supporting organizations are categorized based on their relationship with the supported organization: Type I –... Read More

What types of insurance do foundations typically carry?

In today’s litigious society, anyone—including your foundation and the individuals associated with it—may be the target of a lawsuit. Although state and federal laws may provide some protection for your board members and volunteers, this immunity will extend to your organization in only a few states. These laws often contain no protection for legal expenses,... Read More