From a tax law perspective, a private foundation may pay “reasonable and necessary” administrative expenses—and count them toward its annual distribution requirement—without subjecting the foundation or its managers to a penalty tax. These expenses must be (a) related to the accomplishment of the foundation’s charitable purposes, (b) related to its investments, or (c) payments of... Read More
At meetings, your board does the bulk of its work for your foundation, so it’s important to make every meeting count. Your board may be fulfilling its mission and managing its responsibilities, but if board meetings start and finish late, if trustees aren’t prepared, or if there never seems to be enough time to get... Read More
The Form 990-PF is often the public face of your foundation. It is publicly available at www.guidestar.org. Embedded in the Form 990-PF is a series of oft-neglected questions that give you an opportunity to explain how your charitable activities advance the foundation’s mission and vision. Instead of using the two or three lines provided on the... Read More
Amounts that foundations set aside or save for specific projects may be treated as current qualifying distributions. To qualify, the foundation must satisfy the Internal Revenue Service (IRS) rule that the amount set aside for a specific project be paid out within 5 years, and that the set-aside amount is appropriate because the project can... Read More
Collaboratives offer funders the opportunity to: Exchange information and best practices. Leverage grantmaking and streamline efforts. Work on a larger scale in terms of dollars or visibility. Share risks and opportunities. In some cases, fund jointly. Is a funder collaborative right for you? Read on. Funder collaboratives defined Each of three types of funder collaboratives... Read More
Stookey grew up and attended elementary school in Marshall, a small town just east of Battle Creek, MI. The year was 1936, and Stookey was a 5th grade student of Vyda Mumby during her second year of teaching. According to Stookey, Mumby “loved teaching; and like anyone doing something they like, she was good at... Read More