Funders can engage in advocacy, can fund advocacy, and can encourage grantees to engage in advocacy, with exceptions involving lobbying and electioneering. The two types of lobbying are direct lobbying, communicating with legislators to express a view about specific legislation, and grassroots lobbying, asking the public to communicate with legislators to express a view about... Read More
Board members should be aware of three key legal requirements that may impact foundation investments. Avoid jeopardizing investments The board has the legal responsibility to manage the foundation’s assets in a manner that avoids imprudent investments. The Internal Revenue Service (IRS) may penalize the foundation if it is found to be engaging in investments that... Read More
Consider offsetting capital losses with capital gains. Over the past decade, the largest taxable component of investment income for most foundations has been realized capital gains. Foundation management should review their portfolio to ascertain if they can take losses to offset any realized gains. Foundations should be aware that any excess capital losses over capital... Read More
As an employer, you are responsible for documenting that your employee is eligible to work in the United States. To do this, the employee must complete Immigration and Naturalization Service Form I-9, Employment Eligibility Verification. You, the employer, must keep this form on file for as long as the employee works for you. For small... Read More
Under the Further Consolidated Appropriations Act of 2020, private foundations are now subject to tax at a flat rate of 1.39% of their net investment income, effective for taxable years beginning after Dec. 20, 2019. Private Foundations are also subject to the requirement of section 4942 that a minimum of 5% of the fair market... Read More
Most foundations cannot directly earmark money to support a lobbying campaign. (Community foundations and others that have public charity status are notable exceptions to this rule.) What constitutes lobbying, however, often is murky. Support for a public education campaign, for example, usually is not lobbying, assuming it does not urge lawmakers or the public to... Read More