To develop a filing system as part of your overall records management system, first sort your documents into major categories that fit with your foundation’s operations. Foundations sort their documents in different ways; some foundations, for example, sort according to the following categories: Founding Documents Legal and Accounting Records Board Records Program Records Personnel Records... Read More
Generally, a worker may be classified as an independent contractor if the employer has the right to control or direct the result of the work but not the means or methods of accomplishing the result. The Internal Revenue Service (IRS) uses a 20-factor test to determine whether a worker is an employee or an independent... Read More
Private foundations are subject to several sections within the Internal Revenue Code (IRC). The following list is not comprehensive but addresses eight sections that will guide foundation managers throughout the life of the foundation: Section 4940 imposes an annual excise tax on a private foundation’s net investment income. Foundations will need to pay taxes on... Read More
Generally, states have similar laws regarding foundations. It typically is recommended that you incorporate in the state where the main office will reside so that you only need to file paperwork with one state. Certain states, including California and New York, maintain minor limitations and/or requirements on private foundations, which you should understand before incorporating... 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
“Innovation is in the eye of the beholder,” says Sandy Herz, director of global partnerships at the Skoll Foundation. “Different foundations see it in different ways.” Convening grantees may be innovative for some foundations, even though others have been doing so for years. Or, another foundation might add program related investments to its grantmaking portfolio,... Read More