Personnel policies address a variety of federal laws and executive orders on how employers must select, compensate, and treat individuals in the workplace. Even if your foundation has only one staff member, you still should have a personnel policy in place, even a simple one. Most policies include items related to hiring practices and, if... Read More
At meetings, your board does the bulk of its work for your foundation, so it’s important to make every meeting count. Your board may be fulfilling its mission and managing its responsibilities, but if board meetings start and finish late, if trustees aren’t prepared, or if there never seems to be enough time to get... Read More
In 2002, the Texas attorney general sued the board of directors and officers of the Carl B. and Florence E. King Foundation—a foundation with assets of $30–$50 million—for breaches of fiduciary duty. After the court appointed a new board, the King Foundation joined in the suit. In June 2004, a Texas jury awarded more than... Read More
Whether a foundation is formed as a corporation or a trust, it must comply with its governing documents, which are legally binding. If your foundation is a corporation, its governing documents are its articles of incorporation—referred to by some states as articles of organization or certificate of incorporation—filed with the state’s secretary of state (or... Read More
Trustees have many responsibilities, and it’s important to be vigilant in the areas in which trustees trip up most. Here are five ways to keep your trustees on the right track. Develop a cohesive and compelling purpose Foundations with a clear mission statement can minimize the conflicts that arise when trustees’ personal agendas dominate. Work... Read More
With all the attention given to the excise tax rules (e.g., sections 4940–4946 of the Internal Revenue Code [IRC]), the directors or trustees of private foundations (i.e., “managers”) may be inclined to overlook their fiduciary duties under state or common law. This complacency can be compounded by the fact that many private foundations are governed... Read More