First things first: What is a community foundation? Most regions have a community foundation, an independent charitable organization that serves a defined geographic location—typically, a city or county. Community foundations accept gifts from individuals, businesses, foundations, and government agencies. Donors give in three main ways: unrestricted gifts to support the community foundation, gifts to the... Read More
Exponent Philanthropy surveys our members regularly to learn about their grantmaking, governance, investments, and administration. We also learn what keeps our members up at night. What consistently tops the list? Succession, the crucial task of passing the leadership baton. Whether it involves the next generation, a new board member, or a new hire, successful succession... Read More
The individuals responsible for managing a foundation’s assets want their investments to do well. Beyond these good intentions, however, most states maintain laws with higher standards that legally bind trustees and board members to a series of duties and responsibilities. These standards—called fiduciary duties—are commonly known as the duties of care, loyalty, and obedience, as... Read More
Although your grants speak volumes about your identity, your foundation may play other roles that do just as much good—maybe even more. Maybe it’s speaking out about education issues or offering expertise in neighborhood development. How do you find your foundation’s voice? What is your identity? Some large foundations hire consultants at five- and six-figure... Read More
The Northwest Area Foundation (NWAF) of Minnesota was sued in November 2002 by a potential grantee located in the Yakima Valley of Washington State. NWAF, a grantmaking foundation established in 1934, was organized to help communities throughout an eight-state region reduce poverty. It makes grants totaling approximately $18 million per year. Under its Community Ventures... Read More
With self-dealing rules that are sometimes confusing, can a small foundation determine whether a potential transaction constitutes self-dealing? It can! Apply these three straightforward questions to any situation. Does the transaction involve a disqualified person? The Internal Revenue Service defines a disqualified person as one of the following: Officers, directors, trustees, and others with similar... Read More