In 2002, the Texas attorney general sued the board of directors and officers of the Carl B. and Florence E. King Foundation—a foundation with assets of $30–$50 million—for breaches of fiduciary duty. After the court appointed a new board, the King Foundation joined in the suit. In June 2004, a Texas jury awarded more than... Read More
Although attending fundraisers and similar events may not seem like a benefit to you, the Internal Revenue Service (IRS) may see it differently: as self-dealing, an act in which a trustee, staff member, or other “disqualified person” receives direct, personal benefit. To avoid falling afoul of laws to prevent self-dealing, many private foundation boards establish... Read More
Private foundations are subject to a range of legal regulations. The following list is not comprehensive but provides a sense of the scope of laws that apply to private foundations. Laws that apply to private foundations and public charities General legal requirements Fiduciary duties Conflicts of Interest Private inurement and public benefit Records and disclosures... 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
If your foundation encounters an organization struggling with its operations, how can you say no—declining or not renewing a grant—in a way that makes a difference? For our small family foundation, the facts were clear. Getting to those facts had not been easy: The board of directors of the nonprofit we were funding had not... Read More