In addition to fairly consistent and often dramatic appreciation in value, real estate can generate substantial cash flow. The yield from real estate often exceeds what one can derive from fixed income securities, such as bonds or Treasury bills (T-Bills). Between 1972 and 2000, Real estate investment trusts (REITS) generated an average yield of 12.45%... Read More
Should you choose to hire paid staff, compensation must be reasonable, and the services provided must be reasonable and necessary to carry out the private foundation’s tax-exempt purpose. Compensation even may be provided to a disqualified person (i.e., staff or board member) as long as these standards are met. The Internal Revenue Service (IRS) says... Read More
A well-run board retreat energizes people and propels your foundation forward. Unfortunately, many board members approach retreats with about as much enthusiasm as a trip to the dentist. This dread often is justified: Lack of preparation, hidden agendas, or unproductive communication can make a retreat seem like a big step backward for the foundation. The... Read More
Private foundations are permitted to pay for or reimburse ordinary and necessary expenses incurred in carrying out their activities, including the costs of travel by board members. These expenses typically include travel expenses for board meetings or philanthropy conferences, long-distance telephone expenses for conference calls, and expenses incurred while going on site visits (e.g., mileage,... Read More
If you believe your foundation’s only asset is money, think again! Whether managed by volunteers or with the help of staff, your foundation is sure to have a range of assets at its disposal: Human assets—The creativity, passion, energy, and resourcefulness of your founders, trustees, and staff create huge potential for impact above and beyond... Read More
What are some key elements of a grantmaking strategy? A mission statement, which is informed by the donor’s intent and objectives A statement of purpose, defined by program interests, geographic focus, grantmaking style A process for accepting, reviewing, and awarding grants A set of guidelines that inform the grantseeking community about what the foundation does... Read More