Private foundations, or PFs, occasionally consider making investments in vehicles in which one or more of their disqualified persons, or DPs (e.g., officers, directors, substantial contributors) also have invested or also are considering an investment. This article focuses on issues raised for investments in vehicles that are owned and managed by persons unrelated to the... 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
Foundations frequently wonder what costs are acceptable to incur while making grants. Grantmaking foundations that have higher-than-average costs often defend themselves by pointing out they sometimes include direct charitable activities (DCAs) in their administrative costs, which are part of their 5% qualifying distributions. These grantmaking foundations sometimes sponsor charitable work, such as convening meetings of... Read More
Generally, states have similar laws regarding foundations. It typically is recommended that you incorporate in the state where the main office will reside so that you only need to file paperwork with one state. Certain states, including California and New York, maintain minor limitations and/or requirements on private foundations, which you should understand before incorporating... Read More
The Form 990-PF is a complex, public document private foundations file annually with the Internal Revenue Service (IRS) to help ensure that they are fulfilling their charitable purposes. As a general policy, a foundation should try to file its Form 990-PF by the due date (i.e., the 15th day of the 5th month after the... Read More
Supporting organizations are 501(c)(3) public charities with a subclassification of 509(a)(3), whose legal structure is formed with a certain relationship with one or more other public charities, the “supported” organization(s). Supporting organizations might be university or hospital foundations; foundations created to support libraries, elementary schools, or other governmental units; or trusts created by individuals to... Read More