Private foundations are subject to several sections within the Internal Revenue Code (IRC). The following list is not comprehensive but addresses eight sections that will guide foundation managers throughout the life of the foundation: Section 4940 imposes an annual excise tax on a private foundation’s net investment income. Foundations will need to pay taxes on... Read More
At meetings, your board does the bulk of its work for your foundation, so it’s important to make every meeting count. Your board may be fulfilling its mission and managing its responsibilities, but if board meetings start and finish late, if trustees aren’t prepared, or if there never seems to be enough time to get... Read More
The Form 990-PF is often the public face of your foundation. It is publicly available at www.guidestar.org. Embedded in the Form 990-PF is a series of oft-neglected questions that give you an opportunity to explain how your charitable activities advance the foundation’s mission and vision. Instead of using the two or three lines provided on the... Read More
Amounts that foundations set aside or save for specific projects may be treated as current qualifying distributions. To qualify, the foundation must satisfy the Internal Revenue Service (IRS) rule that the amount set aside for a specific project be paid out within 5 years, and that the set-aside amount is appropriate because the project can... Read More
“We’ve always been interested in young people and their college education,” said Mr. Smyth. While working in Wilmington, DE, he worked with inner-city kids. “That was the real impetus to set up the foundation. When we left Wilmington and retired in Virginia, we decided to create a local scholarship program.” Nelson County, a rural area... Read More
Nongrant work has several major impacts: Providing consulting to a small nonprofit on how to develop its management structure, for example, or enhancing its fundraising or technology systems can add tremendous value to grants that build capacity. Embarking on a more intentional process of learning, scanning, or research accelerates and deepens a funder’s understanding of... Read More