Tax and Legal Archives - Page 6 of 13 - Exponent Philanthropy


Topic: “Tax and Legal”

Filing the Form 990-PF

How do you know if your foundation’s Form 990-PF is true, correct, and complete? Can you simply assume an accountant will get it right? Unfortunately, the answer is no. In fact, regulators estimate that at least 25% of all 990-PFs have errors. Despite this statistic, there is hope. This primer highlights problem areas, offers tips,... Read More

Year-End Tips for Meeting Your Minimum

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

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

Top Seven Year-End Foundation Tax Tips

Consider offsetting capital losses with capital gains. Over the past decade, the largest taxable component of investment income for most foundations has been realized capital gains. Foundation management should review their portfolio to ascertain if they can take losses to offset any realized gains. Foundations should be aware that any excess capital losses over capital... Read More

Tipping the Scales With a Large Grant

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