Bylaws are a must for any foundation. They specify the operations and rules of conduct for a foundation—how it will run and be managed. Every foundation that is formed as a corporation must have bylaws among its governing documents. Each state has its own specifications for content of the bylaws, and your foundation’s bylaws must... Read More
The best protection against audit problems is to know the Internal Revenue Service (IRS) rules and keep good records. The interest and dividend statements, canceled checks, and so forth that back up your return should be kept with the return. A typical foundation IRS audit notice requests that the following records be made available: Organizing... Read More
If you believe all you have is money, think again! Small foundations—including those managed completely by trustees—have at their disposal a host of nondollar resources: Human assets—The creativity, passion, energy, and resourcefulness of your founders, trustees, and staff create huge potential for impact above and beyond dollar impact. Knowledge about community need— Foundations accumulate knowledge... Read More
My husband and I created The O’Grady Foundation and, after some trial and error, agreed to focus our funding on the arts in our New York City area. Although we support several major arts and cultural institutions in our region, we concentrate our efforts on smaller institutions with annual budgets of $3 million or less.... Read More
Three Exponent Philanthropy members shared how their foundations were forging ahead during the Great Recession of 2008: Henry Berman, president and trustee, The Edith Glick Shoolman Children’s Foundation, New York and Massachusetts; Billie Hall, president and CEO, Sunflower Foundation, Kansas; and Mari Brennan Barrera, vice president, Eos Foundation, Massachusetts. Where do you find energy and... Read More
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