Private foundations may grant to individuals in four permitted ways, with different recordkeeping and Form 990-PF reporting requirements for each. Each way is described below, and you can read more in our publication Legal Essentials for Small Foundations and in these articles: Giving to Individuals Through Scholarships and Loans: Five Foundations Share Their Strategies Setting Up... Read More
We do! Private foundations are permitted to pay for or reimburse ordinary and necessary expenses incurred in carrying out their activities, including the costs of travel by trustees. Your board can state its reimbursement policy clearly and in writing, and include the following: Require that travel on behalf of the foundation be undertaken in a cost-effective... Read More
The following excerpt is from our publication Hiring Great Staff: According to IRS regulations, every person who receives compensation must be classified as an independent contractor or employee. The classification depends on specific factors outlined by the IRS. For example, the IRS considers workers to be independent contractors if the company does not manage how... Read More
Funder Collaboration: It’s Not Always What You Think is a great place to start, dispelling common myths about funder collaboration. You’ll also find funder stories and advice in these articles: Funder Collaboratives: A Guide to Successful Partnerships Collaborating With Other Funders Supporting and Engaging in Networks We also encourage you to join our November 13... Read More
We encourage funders to right-size their grant applications to reflect grant size, grant type, and any existing relationships with applicants. The article Right-Sizing Your Requirements includes sample grant applications provided by Exponent Philanthropy members. When designing your grant application, you may also find these articles helpful: Creating Grant Guidelines Communicating With Grantseekers The Advantages of Online... Read More
The self-dealing rules are very complicated and can be quite frustrating for private foundation managers, as self-dealing can arise in many seemingly innocuous situations. Because of the complexity of these rules, foundation managers should consult counsel any time they are contemplating a transaction with a disqualified person. Read on for some of the most common... Read More