Your organization’s spending policy should be carefully selected after the thorough evaluation of several key inputs. A qualitative review of the type of organization, time horizon, beneficiaries, purpose of the endowment, sources of funding, institutional resources, applicable donor restrictions, and the investment policy statement should lead to a quantitative analysis that addresses: Annual operating expenses... Read More
A records retention policy is a simple written document—one or two pages—that summarizes your procedures for storing, organizing, purging, archiving, and protecting foundation documents and fulfilling public reporting requirements. A records retention policy typically includes the following information: What documents you store and how long you store them Where you store different types of documents:... Read More
Basic requirements for board composition generally are reflected in a foundation’s bylaws or trust document. You’ll also want to consider the qualities you want in individuals who serve on your board. It is helpful to describe the expectations of board members in a position description. Bylaws or trust document requirements Every state has basic requirements... Read More
Program related investments (PRIs) are a special type of grant that gained popularity during the Great Recession to preserve endowment assets while pursuing a charitable mission. PRIs are program tools like grants and should not be confused with other forms of socially responsible investing in which producing financial return is a priority. How does a... Read More
Personnel policies address a variety of federal laws and executive orders on how employers must select, compensate, and treat individuals in the workplace. Even if your foundation has only one staff member, you still should have a personnel policy in place, even a simple one. Most policies include items related to hiring practices and, if... Read More
Although most foundations choose to exist in perpetuity, it is increasingly common for foundations to consider closing shop. The reasons for closing shop are often straightforward—donor mandate, a preference to give while living, challenging family dynamics, or a desire to spend out for greater impact in the short term—but the process can be complicated. If... Read More