Andrew Schulz

General Counsel, New Venture Fund

Andrew Schulz is responsible for the New Venture Fund’s legal compliance and for providing expert guidance to the firm and its many hosted projects on a broad cross-section of tax, legislative, and regulatory issues. Andrew has over 17 years of experience representing nonprofits and is deeply knowledgeable on the many legal issues relating to the governance and management of charitable organizations, including federal income tax, grant making, lobbying, political activity, endowment management, fiscal sponsorship, charitable giving, nonprofit corporations, contracts, copyright, trademark, and employment law.

Previously, Andrew was Executive Vice President at Foundation Source, serving the company’s more than 1,100 family and corporate foundation clients. He also represented the company within policy, legislative, and regulatory circles, and worked to cultivate relationships between the firm and attorneys, advisors, nonprofit partners, and other philanthropy service firms.

Andrew may be best known for his over 12 years of experience at the Council on Foundations. While there, he held numerous roles, most recently leading the council’s government relations and advocacy efforts as Vice President, Legal and Public Policy. He also served as in-house counsel, educating council members on legal issues that affected their operations; administering the council’s governance functions; serving as the lead staff member on matters of ethics and best practices; and ensuring organizational compliance with state, local, and federal laws. Among his accomplishments while at the Council on Foundations, Andrew is most proud of the roles he played in designing and implementing an ethical code and sanctions process for members, and developing and rolling out the National Standards for US Community Foundations.

A nationally recognized authority on private foundations, Andrew is a frequent speaker and occasional author on various topics related to the philanthropic sector. He is a graduate of the College of Wooster and has a JD with honors from the George Washington University Law School. He is a member of the Maryland and District of Columbia bars. He has served on many nonprofit boards both as a director and as pro bono counsel. He lives in Kensington, MD with his wife and two children.

Contributions

Is it Self-Dealing to Give a Grant to a Specific Child’s Tuition?

Posted on December 11, 2014 by Andrew Schulz

A trustee wants to give a grant for their child to attend a private school. The trustee then instructs the school, a legal 501(c)(3), to apply to the foundation for a scholarship grant that will be applied to the specific child’s tuition. Is this self- dealing? This is self-dealing. You’re absolutely prohibited from making a payment that would be earmarked… Read More

Can the Foundation Pay Rent to the Family Office?

Posted on December 11, 2014 by Andrew Schulz

The foundation may not pay rent to the family office, because the family office is considered a disqualified person, and that’s not a personal service. However, a foundation and a family office can share office space, provided that the person to whom the foundation is paying rent, i.e., the landlord, is not a disqualified person. So, if it’s a third-party… Read More

Toeing the Line: Legal Pitfalls in Family Foundation Governance

Posted on December 11, 2014 by Andrew Schulz

Should we accept those tickets to the opening of the new local theater that just arrived in the mail? Can our family office charge our foundation for rent? Is it o.k. for us to pay Uncle Bob to manage the foundation’s investment portfolio? Can we make a grant to our family's donor advised fund to help make year-end payout requirements? … Read More

Are There Any Problems with a Foundation Setting Up a Donor-Advised Fund?

Posted on December 11, 2014 by Andrew Schulz

There are no problems with a foundation setting up a donor-advised fund. When the Pension Protection Act was drafted back in 2006, one of the things they considered explicitly was prohibiting distributions from donor-advised funds to private foundations, because of the way you can arbitrage the tax rules. They left that out, because they considered it to already be illegal… Read More

Are There Any Regulations on Gifts That Are Accepted by Family Members?

Posted on December 11, 2014 by Andrew Schulz

Are there any regulations on gifts that are accepted by family members? Should we not accept restricted gifts, for instance? You have to be careful about closely held business interests because of the restrictions on self- dealing and who you can sell them back to. There are no laws that explicitly prohibit certain gifts. Restrictions, if they’re for a particular… Read More

Should Family Members Write Two Checks for an Event, One for the Charitable Portion, and One for the Non-Deductible Portion?

Posted on December 11, 2014 by Andrew Schulz

Well, this one’s easy, but not for the reason that you think. You should stop that process all together. The IRS has ruled that you can’t split payments that way. If there’s a deductible portion and non-deductible, this process, known as “bifurcation” is not permissible. The IRS has said you can’t write the charitable portion out of the foundation and… Read More

What Happens if You Under-Estimate Excise Taxes?

Posted on December 11, 2014 by Andrew Schulz

In addition to paying the tax on investment income, which is either 2 percent or 1 percent, foundations have to pay quarterly estimated tax payments. Typically, they anticipate what those payments are. If you’ve underpaid it, you need to rectify it, and how you do so really depends on how much you’ve underpaid by. If you’re grossly and intentionally underpaying… Read More