Policy on Self-Dealing (Anonymous Family Foundation)
Posted on June 19, 2015 by Anonymous
Sample self-dealing policy from an anonymous family foundation… Read More
Conflict of interest and self-dealing
Whistleblower policy (sample)
Posted on June 19, 2015
Whistleblower policy for the California-based Durfee Foundation… Read More
Sample Whistleblower Policy
Posted on June 19, 2015 by Anonymous
This is a sample whistleblower policy for nonprofit organizations and foundations… Read More
Can the foundation reimburse expenses for a family gathering that takes place during a board meeting?
Posted on June 5, 2015 by Andras Kosaras
A foundation may only incur expenses for meetings/events that are related to carrying out its exempt purposes (including reasonable and necessary administrative expenses). If a board member wants to invite all board and family members to a family event, the foundation may only reimburse the board member for the expenses incurred if the event is for the purposes of the… Read More
Can You Avoid Conflict of Interest and Have the Family Office CFO on the Investment Committee?
Posted on March 18, 2015 by Andrew Schulz
Yes. Conflicts of interest of this type come up all the time. You shouldn’t try to avoid conflicts, because they’re impossible to avoid. At some point, they will come up. The way to handle a conflict is to be trained about what may come up, to be very clear about disclosing them, and to make sure that disinterested, non-conflicted people… Read More
Can we accept complimentary tickets?
Posted on January 9, 2015 by Andrew Schulz
Complimentary tickets are fine. The real issue here is: are they really complimentary, or is it a quid pro quo? Generally, if there’s a good foundation reason to be there, in particular being recognized, you can go… Read More
May Our Board Pay a Disqualified Person for Services Such as Portfolio Management?
Posted on December 11, 2014 by Andrew Schulz
May our board pay someone for portfolio management if they are an employee of a company owned or led by a board member and direct descendant of the foundation’s father? Yes, even if the individual being employed to do that work is a disqualified person, paying someone reasonable and necessary compensation to manage the assets of the foundation, regardless of… Read More
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
Is it Considered Self-Dealing to Give Money to Local Institutions in Which the Donor Participates?
Posted on December 11, 2014 by Andrew Schulz
You can make grants to any organization or cause if it serves the general public. So, the tax- center answer is, you can make a grant that benefits a charitable class, even if you’re in that charitable class. For example, if you are a breast cancer survivor and you want to use your foundation to support breast cancer research, the… 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