A program related investment (PRI) is a loan, loan guarantee, or other type of investment made by a foundation to support a charitable purpose, and is a powerful and flexible tool to add to your foundation’s toolkit. A PRI can be counted toward a foundation’s distribution requirement as long as it meets the following federal... Read More
An investment policy statement (IPS) should be the starting point and bedrock of an institution’s investment strategy. It constitutes a road map of how the institution plans to achieve and support its stated mission through its investment strategy. Including applicable IPS components Here is a list of common IPS components. Include only those items that... Read More
Consultants allow your foundation to gain expertise on a part-time basis without the cost and office space for full-time staff. Moreover, the board doesn’t need to supervise the consultant as they would a staff person. Consultants are skilled professionals who can help you move your program forward. Depending on the task at hand, they can... 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
The best protection against audit problems is to know the Internal Revenue Service (IRS) rules and keep good records. The interest and dividend statements, canceled checks, and so forth that back up your return should be kept with the return. A typical foundation IRS audit notice requests that the following records be made available: Organizing... Read More