Three investment options for foundations are: Investment consultants, who help trustees establish and implement a decision-making structure for investment management Outsourced chief investment officer (OCIO) firms, which act as the investment office on a daily basis for the foundation and typically has discretion over hiring/terminating managers and rebalancing the portfolio Investment managers, who buy and... Read More
At its core, CEO evaluation involves two basic steps: defining the CEO’s job responsibilities and checking back at a later point to determine if the responsibilities were met. Keep in mind: Although formal evaluation is an important component of a good working relationship, it is not a substitute for ongoing communication. CEOs need feedback year... Read More
To document an investment process that helps your foundation sustain its organizational purpose and achieve its giving goals, a comprehensive investment policy statement (IPS) is vital. The benefits of a well-crafted IPS You should strive for an IPS that does more than simply allow you to “check the box.” A valuable IPS will go beyond... Read More
There is little legal advice specific to recordkeeping after a foundation closes. According to best practice, however, financial and tax records should be kept for a minimum of 7 years after their filing dates. Other business records, such as pension plans and D&O liability insurance contracts, should be kept for a minimum of 10 years.... Read More
A 501(c)(3) organization is recognized as tax-exempt by the Internal Revenue Service (IRS). Private foundations and public charities are two main types of 501(c)(3) organizations. Public charities are then divided into three distinct categories. As a private foundation, it is important to know which specific category the potential grantee falls into; knowing a grantee is... Read More
As a direct result of a dramatic increase in the foundation’s asset base, the Hutton Foundation decided to offer program related investments (PRIs) to nonprofit organizations. This growth necessitated a quick increase in annual distributions to meet the 5% annual payout requirement set by the Internal Revenue Service. A portion of the foundation’s annual distributions... Read More