Consider a foundation with assets of $10 million. A foundation of that size would be required to disburse $500,000 annually to satisfy the 5% distribution requirement. Although you are (hopefully) carefully working to decide who gets what portion of this $500,000, the remaining $9.5 million also needs your attention. $9.5 million. If the sheer size... Read More
For starters, which foundations should consider having a pension plan? One consideration is eligibility: Any foundation that compensates any individuals for their services, whether those individuals are full-time employees, part-timers, or board members, can set up a pension plan for those individuals. Of course, tax-exempt organizations don’t gain the same tax benefits from pension contributions... Read More
Three years ago, Ann Murray and I were having lunch and discussing our favorite subjects: family, friends, and community. Ann and I are married to first cousins who are lawyers and partners in a family law firm in collaboration with brothers, cousins, sons, and a daughter—nine Murrays total. Collectively, we have 30 children and 17... Read More
For more than a century, philanthropists have debated whether a foundation should exist in perpetuity. Attitudes on this issue likewise vary among Exponent Philanthropy members. The following aims to provide a balanced summary of both arguments. Continue in perpetuity Donor intent—Many foundations were created to exist in perpetuity; spending now would go against the donor’s... Read More
Foundation trustees have many responsibilities, but fulfilling their legal duties probably tops the list. As such, it’s important that you know the rules and where trustees trip up most. Beyond the law, there are many things foundations can do, such as having a clear mission statement and healthy decision-making process, to help trustees stay out... Read More
The easiest way to fund international causes is to use a U.S.-based intermediary or aid organization that has networks in foreign locations. Those organizations specialize in giving abroad and can redistribute funds effectively to meet specific needs. Not only may the grant be more effective because of the organization’s connections but foundations avoid the additional... Read More