August 2018 - Exponent Philanthropy

August 2018 Resources

What should we consider before granting to an organization’s fiscal sponsor?

Quoting the article Serving as a Fiscal Sponsor by the law firm Arnold & Porter: In a fiscal sponsorship, a 501(c)(3) public charity or private foundation receives tax-deductible contributions on behalf of a group or organization that is not recognized by the IRS as tax-exempt under section 501(c)(3). Some projects use fiscal sponsors while their... Read More

Why can’t our family business rent space to our foundation at below market rates?

Although it may seem counterintuitive, a family business renting space to the family’s private foundation, even at below market rates, is considered an act of self-dealing, unless the space is leased to the foundation for free. Self-dealing involves a complicated set of rules to prevent most transactions between private foundations and their insiders, known as... Read More

Can our family foundation use foundation funds to produce a biography of our founder?

Yes. Founder biographies are often written to inspire other donors to get involved in a community or cause, philanthropically or otherwise. The biography should be seen as an opportunity to educate the public about the founder’s philanthropy, focusing on the individual’s service to a community or cause. Its focus can extend beyond foundation activities—for example,... Read More