Family foundations are a breed apart. The impact of family structure and dynamics on how a foundation is governed is enormous and consistently underestimated. Join us for an overview of how to truly integrate the family into family foundation governance. The program will cover these essentials: Forgotten factors – how family dynamics, family size and family structure should guide decisions… Read More
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
You’d have to check the bylaws and what the procedure is. Who and who can’t serve on the board is a matter of foundation policy. There’s no law that prevents non-family members from being on the board, but you should be very careful to observe the rules and policies set forth in your bylaws or your articles about the election… Read More
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
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
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
There are at least two options. First, it’s always wise to return a gift or benefit of this kind if you don’t want to use it. This is true for all sorts of tickets, benefits, and other awards and gifts. It’s also always permissible to use those things in furtherance of charitable purposes. My favorite example is tickets to an NFL… Read More
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
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
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
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