Q&A's Archive - Page 5 of 40 - Exponent Philanthropy

Q&A Archive

Foundation administrative expenses; what’s important to know?

From a tax law perspective, a private foundation may pay “reasonable and necessary” administrative expenses. These also count toward its annual distribution requirement, without subjecting the foundation or its managers to a penalty tax. Administrative expenses must be (a) related to the accomplishment of the foundation’s charitable purposes, (b) related to its investments, or (c)... Read More

We’re considering setting up a scholarship program. Got any tips?

Private foundations that want to have a scholarship program—and do the work of publicizing the program, reviewing applications, choosing winners, and monitoring awards—must get prior approval from the Internal Revenue Service. This one-time review ensures that you award scholarships (or other grants for study, travel, or similar purposes) in an objective, nondiscriminatory way. Without IRS... Read More