Tax and Legal Archives - Page 9 of 13 - Exponent Philanthropy

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Topic: “Tax and Legal”

Meeting Your Minimum Distribution Requirement

In 1964, Congress enacted mandatory distribution rules to prevent private foundations from receiving gifts and investing the assets—yet never spending funds for charitable purposes. Congress thought it unfair to allow a charitable deduction when, in some cases, funds were not being directed to charity. Generally speaking, a private foundation must make annual charitable expenditures, called... Read More

Legal Requirements for Foundation Investments

Board members should be aware of three key legal requirements that may impact foundation investments. Avoid jeopardizing investments The board has the legal responsibility to manage the foundation’s assets in a manner that avoids imprudent investments. The Internal Revenue Service (IRS) may penalize the foundation if it is found to be engaging in investments that... Read More

Is This Self-Dealing? Three Questions to Ask

With self-dealing rules that are sometimes confusing, can a small foundation determine whether a potential transaction constitutes self-dealing? It can! Apply these three straightforward questions to any situation. Does the transaction involve a disqualified person? The Internal Revenue Service defines a disqualified person as one of the following: Officers, directors, trustees, and others with similar... 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