When an open seat becomes available on your board, how do you decide who will fill it? Do you cross your fingers and hope for the best? Many small foundations rely on luck: filling the board with candidates who have the right last name or the right connection to the board. These candidates, though, might... Read More
A records retention policy, also known as a document retention and destruction policy, assists your foundation in following the federal laws that impose criminal liability on any organization that destroys records with the intent to obstruct a federal investigation. Foundations should be sure their policy follows state guidelines on how long paper and electronic records... Read More
Personnel policies address a variety of federal laws and executive orders on how employers must select, compensate, and treat individuals in the workplace. Even if your foundation has only one staff member, you still should have a personnel policy in place, even a simple one. Most policies include items related to hiring practices and, if... Read More
At meetings, your board does the bulk of its work for your foundation, so it’s important to make every meeting count. Your board may be fulfilling its mission and managing its responsibilities, but if board meetings start and finish late, if trustees aren’t prepared, or if there never seems to be enough time to get... Read More
In 2002, the Texas attorney general sued the board of directors and officers of the Carl B. and Florence E. King Foundation—a foundation with assets of $30–$50 million—for breaches of fiduciary duty. After the court appointed a new board, the King Foundation joined in the suit. In June 2004, a Texas jury awarded more than... Read More
Whether a foundation is formed as a corporation or a trust, it must comply with its governing documents, which are legally binding. If your foundation is a corporation, its governing documents are its articles of incorporation—referred to by some states as articles of organization or certificate of incorporation—filed with the state’s secretary of state (or... Read More