In the May/June 1998 issue of Foundation News & Commentary, Jane Nober wrote "That's the Ticket" about using foundation funds to pay for tickets to fundraising events. Six years later, questions about tickets and other tangible benefits paid for by the foundation are still among the most common inquiries received by the Council on Foundations' legal department. We thought it would be helpful to review the basic rules for private foundations and highlight some recent questions we've answered.
Community foundations are grantmaking public charities that are dedicated to improving the lives of people in a defined local geographic area. They bring together the financial resources of individuals, families, and businesses to support effective nonprofits in their communities. Community foundations vary widely in asset size, ranging from less than $100,000 to more than $1.7 billion.
Community foundations play a key role in identifying and solving community problems. In 2011, they gave an estimated $4.3 billion to a variety of nonprofit activities in fields that included the arts and education, health and human services, the environment, and disaster relief. The Community Foundations National Standards Board confirms operational excellence in six key areas—mission, structure, and governance; resource development; stewardship and accountability; grantmaking and community leadership; donor relations; and communications. Foundations that comply with these standards can display the official National Standards Seal. Right now nearly 500 community foundations have earned the seal.
More than 750 community foundations operate in urban and rural areas in every state in the United States; currently, more than 570 belong to the Council on Foundations. The community foundation model also has taken hold around the world. According to the 2010 Community Foundation Global Status Report, there are 1,680 community foundations in 51 countries. Forty-six percent exist outside of the United States. You can use our Community Foundation Locator to view a list of community foundations in the United States.
Below is everything on our site for community foundations. You can use the filtering options on the right to narrow these results.
Every organization exempt under Section 501(c)(3) of the Internal Revenue Code is required to disclose certain information to the public:
Practice 1. The board (and investment committee and staff, if any) of a foundation should understand and fulfill their respective fiduciary responsibilities and duties under applicable law and the governing documents of the foundation and stay informed regarding any relevant changes in law, duties, or responsibilities.
“If I create a fund at the community foundation, can my investment manager still manage the funds?” You may have already come across a donor that asked this question. Such a donor is essentially requesting that the fund they create be invested outside of the foundation’s investment pool(s). While there are cases where the answer must be “no” (e.g., donor wants the investment firm she owns to manage the assets), there are also cases where the answer should be “no.” A strong policy will guide the community foundation in those cases where the answer may be “yes.”
Grantmakers searching for more detailed information about the charitable status of their potential grantees may find the answers they need in the IRS’ Select Check tool.
This IRS online search tool allows the user to:
(1) search the IRS public charity list, known as IRS Publication 78, for data to determine if an organization is charitable,
(2) determine if an organization has filed a Form 990-N (required for smaller charities), or
September 24, 2012
Grantmakers should be advised that Hurricane Sandy is a “qualified disaster” for federal tax purposes. Under IRS rules, this means that employers may more easily assist employees affected by the disaster. Employers and their related foundations may make payments for reasonable and necessary personal, family, living, or funeral expenses, and reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence or its contents. Such payments will not be treated as taxable income to the affected employees.