Keeping organized records throughout the year is essential to crafting an informative and impactful annual report with ease. Here are some practical tips to streamline the process: Create a Dedicated Folder Early. At the start of each year, set up a physical or digital folder specifically for materials you’ll want to reference. Include lists of... Read More
From a tax law perspective, a private foundation may pay “reasonable and necessary” administrative expenses. These also count toward its annual distribution requirement, without subjecting the foundation or its managers to a penalty tax. Administrative expenses must be (a) related to the accomplishment of the foundation’s charitable purposes, (b) related to its investments, or (c)... Read More
Whether your foundation is new or well established, here are some ways you can let the public know you give grants: Distribute your mission and guidelines on your website and at local nonprofit events. Talk with other foundations that have similar program interests. They can sometimes refer grantees to you. Ask if your regional association... Read More
Yes, see our Harassment and Discrimination Policy sample document. Read More
Private foundations that want to have a scholarship program—and do the work of publicizing the program, reviewing applications, choosing winners, and monitoring awards—must get prior approval from the Internal Revenue Service. This one-time review ensures that you award scholarships (or other grants for study, travel, or similar purposes) in an objective, nondiscriminatory way. Without IRS... Read More
You can spot red flags in a nonprofit’s financial statements, Form 990, or through conversation. Here’s what to look for: Financial Statement Red Flags: Decline in annual revenue or net assets Increase in receivables or recurring operating deficits Trend of lower reserve balances or frequent cash flow issues Heavy reliance on restricted income within the... Read More