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
Understanding Foundation Administrative Expenses From a tax law perspective, private foundations are allowed to pay “reasonable and necessary” administrative expenses without incurring penalty taxes. These expenses also count toward the foundation’s annual distribution requirement, provided they meet certain criteria. What Qualifies as an Administrative Expense? To be considered an administrative expense, the cost must fall... 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
Identifying Red Flags in a Nonprofit’s Finances Spotting potential issues in a nonprofit’s financial health can help you make informed decisions. Keep an eye out for these warning signs in financial documents and conversations: Financial Statement Red Flags Declining annual revenue or net assets Increasing receivables or recurring operating deficits Consistently low reserves or frequent... Read More