Results for:   Topic: “Tax and Legal”  

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

Scholarships and Other Grants to Individuals

Private foundations may grant to individuals in four permitted ways, with different recordkeeping and Form 990-PF reporting requirements for each. Grants to individuals for travel, study, or similar purposes via a public charity intermediary, such as a school or university Issuing a grant to an intermediary is the simplest way to award travel fellowships, scholarships,... 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

Self-Dealing Issues for Private Foundations That Co-Invest With Disqualified Persons

Private foundations, or PFs, occasionally consider making investments in vehicles in which one or more of their disqualified persons, or DPs (e.g., officers, directors, substantial contributors) also have invested or also are considering an investment. This article focuses on issues raised for investments in vehicles that are owned and managed by persons unrelated to the... Read More

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

Should We Convert to an Operating Foundation?

Foundations frequently wonder what costs are acceptable to incur while making grants. Grantmaking foundations that have higher-than-average costs often defend themselves by pointing out they sometimes include direct charitable activities (DCAs) in their administrative costs, which are part of their 5% qualifying distributions. These grantmaking foundations sometimes sponsor charitable work, such as convening meetings of... Read More