Ask the Center

What are donor-advised funds?

Posted on March 12, 2019 by Audrey Jacobs, Elaine Gast Fawcett

Think of a donor-advised fund as a personal philanthropy checking and savings account. An individual donor, couple, or family creates an account (a donor-advised fund) by transferring assets to a sponsor or sponsor organization, such as a community foundation, a religious federation, or a commercial gift fund. … Read More

What are the disclosure requirements from the IRS regarding Form 990-PF?

Posted on June 21, 2017 by National Center for Family Philanthropy

As a private foundation it is important that you abide by the rules, and specifically the rules implemented by the IRS. It is no secret that as a 501(c)(3) organization you must be held accountable by not only the government but also by the people. Under the private foundations tax provisions in 1969, private foundations were required to make Form… Read More

What are the roles of board committees?

Posted on June 20, 2017 by National Center for Family Philanthropy

Board committees are at the heart of good governance. Committee members should make the necessary decisions and provide the day-to-day oversight needed to ensure that a family foundation board follows its fiduciary and legal obligations. Refer to Policy Central: Board Commitees for examples of how to organize your foundation’s committees. Once board roles have been established, you should then determine how you… Read More

What is the role of the foundation’s president?

Posted on June 19, 2017 by National Center for Family Philanthropy

The president is responsible for establishing an efficient and effective infrastructure that enables seamless execution of grantmaking functions and heightens professionalism of the foundation’s operations. The role can be broken down into 5 core responsibilities: Leadership for the foundation’s grantmaking– The president is responsible for focusing on the issues that the trustee’s feel are of great importance. He/she is also… Read More

What is a private operating foundation, and should we consider using this option?

Posted on June 14, 2017 by Jason Born

The IRS distinguishes between public and private foundations and, within private foundations, between operating and non-operating (grant-making) foundations. While private operating foundations may choose to make some grants to other charitable organizations, they must engage primarily in direct charitable activities by running their own programs (i.e., using their own facilities, staff and resources to directly further their charitable operations)… Read More

What should my foundation consider when reviewing a request for a capital grant?

Posted on June 14, 2017 by National Center for Family Philanthropy

While capital grants are technically just one aspect or component of a robust grantmaking strategy, there are a few questions and considerations that are unique to capital grants. There are campaign considerations like a strong fundraising strategy, building considerations like effective design, and evaluation processes. The Eckerd Foundation has provided their guidelines and a discussion paper as an sample model as… Read More

What constitutes operating expenses for private foundations?

Posted on June 13, 2017 by National Center for Family Philanthropy

Operating expenses, also known as overhead, are any cost associated with operating your organization. These costs can then be divided into two subcategories, direct costs and indirect costs. Direct costs can be defined as any expense that is required to develop a project. Indirect costs are expenses that are not related to the actual project. Salaries and office rent are… Read More

Should our foundation focus on being “strategic” or “responsive” in our grantmaking?

Posted on June 9, 2017 by National Center for Family Philanthropy

When your board approves a grant, you are hoping and expecting that your philanthropic investment will make a significant impact. In order to become an effective grantmaker, your giving should always align with the core beliefs of your foundation. Beyond this, there are two common approaches that boards take when considering how to allocate the foundation’s resources: strategic or responsive. … Read More

Can we change our registered agent?

Posted on March 13, 2017 by Andras Kosaras

Our foundation is incorporated in the State of California, but the legal address is in the state of Colorado. We have an excellent relationship with our broker who is also located in California. Could we ask him to be our registered agent?… Read More

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