Resource Search Results - Exponent Philanthropy


Results for:   Topic: “Tax and Legal”  

Allocating Foundation Expenses for Tax Purposes

A private foundation is subject under section 4940 of the Internal Revenue Code to a 2% (sometimes 1%) tax on net investment income. It also is subject to the requirement of section 4942 that a minimum of 5% of the fair market value of the foundation’s noncharitable assets must be paid out for charitable programmatic... Read More

Are You Underestimating Your D&O Liability?

Even for nonprofit foundations with few or no employees, the risk of litigation is real—and rising. Why D&O insurance? Once assumed to be costly and once excluded from many nonprofit budgets as a result, D&O liability insurance has evolved into a broad, affordable, and important form of coverage for any foundation. Even if you have... Read More

Attending Fundraisers

Although attending fundraisers and similar events may not seem like a benefit to you, the Internal Revenue Service (IRS) may see it differently: as self-dealing, an act in which a trustee, staff member, or other “disqualified person” receives direct, personal benefit. To avoid falling afoul of laws to prevent self-dealing, many private foundation boards establish... Read More

Beyond the Numbers: Telling Your Story on the Form 990-PF

The Form 990-PF is often the public face of your foundation. It is publicly available at Embedded in the Form 990-PF is a series of oft-neglected questions that give you an opportunity to explain how your charitable activities advance the foundation’s mission and vision. Instead of using the two or three lines provided on... Read More

Closing Shop

Although most foundations choose to exist in perpetuity, it is increasingly common for foundations to consider closing shop. The reasons for closing shop are often straightforward—donor mandate, a preference to give while living, challenging family dynamics, or a desire to spend out for greater impact in the short term—but the process can be complicated. If... Read More

Differences Between Foundations and Other Charities

The Internal Revenue Code (IRC) contains precise definitions for tax purposes of what is a charity and what is a private foundation. The difference is important because special rules and penalty taxes apply to private foundations but not public charities. Section 501(c)(3) of the IRC defines a charitable organization as follows: Corporations, and any community... Read More