When funders give general operating support, also known as gen op grants, they help sustain a nonprofit’s mission, rather than specific programs or projects. Grantees can use these funds to strengthen the organization, or further its charitable purpose as they see fit. This might mean salaries and overhead, investing in technology, furthering fundraising efforts, or... Read More
Program related investments (PRI) are loans, loan guarantees, or other types of investments made by a foundation to support a charitable purpose. They’re also a powerful and flexible tool to add to your foundation’s toolkit. A PRI can count toward a foundation’s distribution requirement if it meets the following federal criteria: They serve a charitable... Read More
Choosing which of the many worthy causes to fund is difficult, which begs the question: How bad is it to give to multiple good causes? The answer is: Not bad at all. However, when we approach charitable giving another way—How can we achieve the most with our resources?—the answer is different. That’s because getting focused... Read More
Working collaboratively in philanthropy is a powerful tool for funders. Philanthropic collaboration can enhance organizational capacity, keeping lone organizations strong and sustainable over time. Moreover, in a sector where organizations often duplicate services, collaboration can streamline efforts and produce better results. Here are some ways funders are supporting nonprofit collaboration, as well as collaborating with... Read More
What’s on the agenda for your board this year? Are you covering the bases of good governance? Maintaining a checklist of annual to-dos can be an easy way to keep your foundation up to date and on-track. A checklist for your board can serve as a reminder of your legal obligations and governance best practices.... Read More
A private foundation must make annual charitable expenditures, called qualifying distributions, equal to at least 5% of the fair market value of its previous year’s endowment. Thus, a foundation with average assets of $5 million in fiscal year 2022 must make roughly $250,000 of qualifying distributions by the end of its next fiscal year, or December... Read More