September 2017 - Page 24 of 32 - Exponent Philanthropy

September 2017 Resources

Form 990-PF Tax Tips

The Form 990-PF is a complex, public document private foundations file annually with the Internal Revenue Service (IRS) to help ensure that they are fulfilling their charitable purposes. As a general policy, a foundation should try to file its Form 990-PF by the due date (i.e., the 15th day of the 5th month after the... Read More

Expenditure Responsibility and Equivalency Determination for International Grantmaking

The easiest way to fund international causes is to use a U.S.-based intermediary or aid organization that has networks in foreign locations. Those organizations specialize in giving abroad and can redistribute funds effectively to meet specific needs. Not only may the grant be more effective because of the organization’s connections but foundations avoid the additional... Read More

Expenditure Responsibility

Expenditure responsibility requires private foundations to: Take steps to ensure that grants to certain organizations are spent only for the charitable purposes for which they were made. Obtain full and complete reports from the grantee on how the funds were spent. Make full and detailed reports on the expenditures to the Internal Revenue Service (IRS).... Read More

Excess Business Holdings

To prevent certain abuses that could stem from allowing a nonprofit to control a for-profit enterprise (e.g., propping up stock prices), private foundations are prohibited from owning more than a small portion of any business enterprise. Specifically, the Internal Revenue Service prohibits a foundation, together with its disqualified persons, from holding more than a 20%... Read More

Direct Charitable Activities

Direct charitable activities (DCAs) are those in which the foundation maintains some significant involvement, rather than simply awarding a grant to a recipient that carries out the activity. Examples include: Conducting educational seminars and conferences Providing goods, shelter, or clothing in which the foundation maintains some significant involvement (e.g., the distribution or delivery of the... Read More