Andrew Schulz

General Counsel, Arabella Advisors

Andrew Schulz is General Counsel for Arabella Advisors. Previously, he was executive vice president and national director of community and legal relations at Foundation Source and prior to that served as vice president for government relations and public policy at the Council on Foundations, where he provided assistance and consultation to council members and the public, and he oversaw the council’s legislative initiatives, as well as outreach efforts to members, nonprofits, policymakers, and the public. Prior to this, he was an associate at a law firm in Washington, D.C., where he specialized in laws affecting nonprofits. Mr. Schulz is a frequent speaker on legal and public policy issues affecting nonprofits. Several of his articles relating to nonprofits have been published. Mr. Schulz holds a J.D. from the George Washington University Law School.


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

Can a Family Member Personally Contribute to a Foundation Pledge?

Posted on December 11, 2014 by Andrew Schulz

Absolutely. There are no rules about what family members can do to support the foundation’s work. So, if the foundation has pledged $10 million to Duke University to build a new basketball stadium, and that is clearly a binding pledge on the foundation, a family member may call up the school and says, “I was going to do this out… Read More

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