Results for:   Topic: “Tax and Legal”  

A Foundation’s State of Incorporation

Generally, states have similar laws regarding foundations. It typically is recommended that you incorporate in the state where the main office will reside so that you only need to file paperwork with one state. Certain states, including California and New York, maintain minor limitations and/or requirements on private foundations, which you should understand before incorporating... Read More

Form 990-PF: Preparing to File

A key to completing or reviewing the Form 990-PF is to have the required source documents available and organized before you start—even if you are hiring someone to complete the form for you. Categorizing expenses For easier access to what you need, it can be helpful to categorize expenses throughout the year as follows: Administration... Read More

Supporting Organizations

Supporting organizations are 501(c)(3) public charities with a subclassification of 509(a)(3), whose legal structure is formed with a certain relationship with one or more other public charities, the “supported” organization(s). Supporting organizations might be university or hospital foundations; foundations created to support libraries, elementary schools, or other governmental units; or trusts created by individuals to... Read More

Comparing Private Foundations and Public Charities

Although all 501(c)(3) organizations are organized and operated exclusively for religious, charitable, or educational purposes, there are two main types of organizations that fall under this classification:  public charities and private foundations. Organizations that qualify as public charities do so by having significant public influence, such as a third or more of their income’s coming... Read More

Foundation Bylaws

Exponent Philanthropy cannot offer sample bylaws—there are many state variations and characteristics and needs of individual foundations—but the following overview does describe common sections and what a foundation board might expect within its own bylaws: Name—In some states, the first section gives the name of the foundation or other similar details required by state corporate... Read More

Tax Filing Methods

A foundation must deposit all depository taxes (e.g., employment tax, excise tax, and unrelated business income tax) electronically using the Electronic Funds Transfer. Generally, such transfers are made using the Electronic Federal Tax Payment System (EFTPS). If the foundation has not yet used EFTPS, enrollment will be required. After the foundation’s information is validated with... Read More