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
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
Understanding the Excise Tax Although private foundations are exempt from the federal income tax, each private foundation must pay an annual excise tax on its net investment income. Congress imposed this tax in 1969, arguing that the income was necessary to pay for the costs of auditing and monitoring private foundations. Historically, the tax was... 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
Last summer, I read Three Cups of Tea, by Greg Mortenson and David Oliver Relin, having bought my copy in a New Hampshire bookstore, where the owner just happened to mention, “This book should be in the hands of every high school student in New Hampshire.” Halfway through the book, I understood what she meant... Read More