Q&A's Archive - Page 39 of 42 - Exponent Philanthropy

Q&A Archive

We’re reconsidering our foundation’s policy on board compensation. What’s common among Exponent Philanthropy members?

Most foundations do not compensate board members for routine board service, but some do. Our 2024 Foundation Operations and Management Report shows that roughly one-third (33%) of foundations compensated board members for routine board and committee service distinct from any compensation for advisory or staff services. Board compensation varied by foundation type: Forty-eight percent of... Read More

Can our foundation, run from the founder’s family office, pay the family office for space and services?

Private foundations cannot engage in the purchase, sale, lease, or exchange of property with a disqualified person—in this case, the founder’s family office—even at below-market rates. The family office may provide space to the foundation at no cost. In addition, private foundations cannot compensate a disqualified person, except for personal services as defined by the... Read More

Is it common for Exponent Philanthropy members to compensate board members for routine board service?

The majority of foundations do not compensate board members for routine board and committee service, but one size does not fit all. Foundations with more assets are more likely to compensate board members, as are non-family foundations. Our publication Board Compensation can help your board carry out a thoughtful discussion about board compensation, craft a policy... Read More

How do Exponent Philanthropy members stay in the know about their communities and causes?

Because the most effective missions and strategies are grounded in a foundation’s values and real needs, funders often “scan the landscape” to uncover funding gaps, reveal opportunities for leverage, or learn more about their chosen missions or focus areas. Here are approaches you might take to scan your communities or issue areas: Talk with people in diverse... Read More

Should we have an investment policy?

Developing an investment policy statement (IPS) sets the course for managing your foundation’s assets through time. It also reinforces how your investment policy and practices will help to achieve your foundation’s mission and goals. An IPS should be the starting point and bedrock of an institution’s investment strategy. It constitutes a roadmap of how the... Read More