Exponent Philanthropy’s Foundation Fundamentals aim to guide you in starting your philanthropic journey. Before diving into your grantmaking, there are several questions to consider. How will you operate your foundation? How will you manage your foundation’s assets and investments? What tax and legal issues should you address? Once you have answered these questions, you can start thinking about your grantmaking, evaluating your impact, and overseeing all these processes so your foundation runs smoothly.

Are you feeling overwhelmed by all these topics? Don’t worry; we’ve created these essential resources to help you consider the various aspects of managing your foundation. Here, you will find links to resources, including sample documents that will help you get started. Once you become familiar with these resources, you can further explore Exponent Philanthropy’s website for more advanced materials in these areas and beyond.

In addition to the resources listed below, we encourage members to review The Foundation Guidebook and explore the Foundations 101 virtual seminar recordings.

Getting Started

This section guides you through starting your foundation and covers important topics for setting up and operating your foundation. It also outlines how to manage foundation tasks and achieve annual goals. If hiring staff, a guide is available. Finally, it assists in establishing a solid record-keeping plan, which may seem tedious now but will save time and frustration later.

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Boards and Governance

This section guides you through building your board while ensuring a clear understanding of the organization’s policies and expectations. You’ll discover helpful strategies for onboarding new members and the important policies that boards need to keep in mind, including legal expectations for board members. By establishing clear expectations and policies from the get-go, you’ll create a solid foundation for success.

Next, we’ll delve into the fascinating nuances of foundation boards, exploring the differences between board and advisory committees as well as the concepts of leadership transitions. Although transitions can pose challenges, proactive planning makes a world of difference. Finally, we’ll highlight the importance  of insurance to safeguard your foundation and board members, so everyone can feel secure and supported in their roles.

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Tax, Legal, and Administration

This section provides essential information for private foundations. We’ll begin by exploring key legal aspects every foundation should know. While this isn’t a substitute for legal advice, these resources can help save on foundation law billable hours! Next, we’ll cover the 990-PF, the annual tax form required for every foundation. With a solid grasp of legal and IRS requirements, you’ll be prepared to plan your foundation’s budget effectively. In the final section, we’ll guide you in assessing expenses for smooth operations and discuss legal regulations in foundation management.

Get ready to learn about topics like self-dealing and expenditure responsibility, enabling grants beyond traditional 501(c)(3) organizations. Finally, we’ll uncover important methods for granting legally to individuals, ensuring compliance while managing your foundation’s IRS activities efficiently.

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Investments

This section outlines the management of foundation funds for perpetuity or defined periods. Effective investment maximizes grant resources. You’ll learn about fiduciary duties for board members, investment management specifics, and developing a comprehensive strategy for board understanding and good governance. Beyond basic management, asset allocation reflects your foundation’s values, influencing risk and returns. Impact Investing allows leveraging your endowment for mission support, adding complexity to management. Understanding program-related investments enhances direct mission support using the endowment.

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Grantmaking

This section develops your foundation’s grantmaking approach. With a solid strategy and clear grantee requirements, you can efficiently track grants and streamline proposal reviews. Identifying strong programs is crucial while understanding nonprofit financials is key for assessing health. Site visits offer insights beyond proposals, revealing effective practices and strengthening partnerships. Knowing advocacy dos and don’ts enhances your foundation’s broader impact grants.

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