Foundations face a number of possible investment expenses whose range is considerable. Be sure to ask questions of your investment managers or your consultant, and don’t accept fuzzy answers. Make reviewing these fees a regular leadership activity. A snapshot of typical fees Custodial fees—These fees are paid to an institution (e.g., bank) to hold your... Read More
There isn’t a right or wrong way to administer your foundation—staffed or unstaffed, paid or volunteer, consultant or employee. Choose the right model for you Volunteers Many small foundations are administered entirely by volunteers. Often, a founder or board member responds to calls, keeps records, and pays bills, just to name a few common tasks;... Read More
The content of an agenda is at the chair’s discretion, although all board members should have the privilege of placing items on the agenda for discussion or action. Board agendas should include at least the following: Approval of the previous meeting minutes—Even if you meet only once a year, you must do this approval. Try... Read More
To prevent certain abuses that could stem from allowing a nonprofit to control a for-profit enterprise (e.g., propping up stock prices), private foundations are prohibited from owning more than a small portion of any business enterprise. Specifically, the Internal Revenue Service prohibits a foundation, together with its disqualified persons, from holding more than a 20%... Read More
Private foundations may grant to individuals in four permitted ways, with different recordkeeping and Form 990-PF reporting requirements for each. Grants to individuals for travel, study, or similar purposes via a public charity intermediary, such as a school or university Issuing a grant to an intermediary is the simplest way to award travel fellowships, scholarships,... Read More
Writes Ken Berger, former president of Charity Navigator: A while ago, a researcher on the nonprofit landscape created a list of every “information intermediary” (including Charity Navigator, GuideStar, BBB, etc.) and calculated there were over 100 of us. . . . Whatever barriers to entry there were in starting such groups have largely dissolved, given... Read More