In addition to paying careful attention to how your foundation is governed, it’s also important to think about how your nonprofit grantees are governed. Here’s a checklist to consider when evaluating a potential grantee. How is the nonprofit’s financial health? Does the grantee have at least one financial expert on its board? If not, does... Read More
Whether joining together to voice your support for a cause or to make grants as a pooled fund, funding partnerships have many benefits: They allow you to work on a larger scale—either in dollars, visibility, or other resources—to risk-share, and to leverage your dollars. Funding partnerships also make for deepened relationships with other funders, which,... Read More
Before his death in 1999, Harold Edelstein identified his charitable goals: aiding hungry and homeless people, and contributing to population control. Rather than funding bricks and mortar, he sought to build lives by directly and immediately impacting needy people. “We attempt to fill niches with direct grants to organizations which they otherwise wouldn’t have,” says... Read More
It’s December and your foundation wants to fulfill its payout requirement within the calendar year. What can you do? Ask your local community foundation, association of grantmakers, or giving circles for information about community needs and nonprofits they support. Consult with members of the faith community. Ask your government social services agencies, United Way, or... 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
Private foundations must follow more stringent rules than public charities, pay an excise tax on net investment income, and pay out an amount equal to 5% of their assets annually. Public charities that are tipped into private foundation status also may lose funding. Many foundations will not give grants to other private foundations, and individual... Read More