The IRS doesn’t list out every possible foundation asset, but broadly defines them as anything the foundation owns, controls, or receives for its benefit.
Common examples include:
- Cash & cash equivalents – checking, savings, money-market funds
- Investments – stocks, bonds, mutual funds, private equity, program-related loans
- Real & tangible property – buildings, land, vehicles, office equipment, art
- Intangible property – copyrights, trademarks, patents, data licenses
- Receivables & prepaid items – outstanding loans, pledges due, insurance prepayments
- Non-cash perks received – gala tickets, sponsorship benefits, gift cards, airline miles
Because every asset belongs to the foundation—not its board, staff, or donors—personal use by a “disqualified person” (e.g., insiders or their families) can trigger self-dealing penalties. Clear policies, good record-keeping, and refusing personal perks can help keep you compliant.
Disclaimer: While we pride ourselves on our advice, please realize Exponent Philanthropy is not a law or accounting firm. The information contained in this Q&A is being provided for informational purposes only and not as part of an attorney-client relationship. The information is not a substitute for expert legal, tax, or other professional advice tailored to your specific circumstances. It may not be relied upon for the purposes of avoiding any penalties that may be imposed under the Internal Revenue Code. We advise that you seek independent counsel for any tax, accounting, or legal issues you may have related to matters that are of a material concern to you or your organization.
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