Nonprofit sector collectively describes the institutions and organizations in American society that are neither government nor business. Nonprofit is a layperson’s term describing a range of organizations—including private foundations—that contribute to the public good. The nonprofit sector in the United States contains more than 1.5 million nonprofit organizations comprising at least 7% of the U.S.... Read More
As one 20-something involved in her family’s philanthropy shared: [It] has given me the perspective that doing good can really be a lifestyle and not just a one- or two-time event. I think that, once you catch the bug of doing good for the world, it doesn’t just stop with philanthropy. It molds the way... Read More
Program-related investments (PRIs) count toward a foundation’s distribution requirement as long as they meet the following criteria: They serve a charitable purpose—A PRI’s primary function must be to further the foundation’s charitable purpose. Income or appreciation of property is not a significant purpose—An investor solely interested in profit would not make an investment on the... Read More
Investing your foundation assets effectively can increase investment returns and thereby provide additional assets to help fulfill your charitable goals. Over the longer term, good investment decisions lead to the potential for more grants and greater impact. Poor investment decisions typically lead to fewer grants and lessen a foundation’s impact. In addition, state law requires... Read More
Fiduciaries should avoid the following Investment practices: Not adhering to the investment policy statement—This is one of the most common mistakes cited by investment advisors to foundations. Self-dealing—Foundation insiders cannot direct investment decisions and/or revenues to self, relatives, close friends, or colleagues. Paying a family member to serve as an investment advisor—Doing so makes it... Read More
Whatever your family’s goals for its giving, these tools and practices can help along the way. Working with consultants Beyond tax, legal, and investment matters, consultants can help your family in a variety of areas, including: Strategic planning, such as crafting a mission statement or planning for evaluation Board development, such as creating policies or... Read More