Grantmakers can legally participate in the political process by following guidelines established by the IRS. Here are some tips.
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.
The Treasury regulations that limit lobbying make no specific reference to community foundations. Thus, the rules generally applicable to all public charities apply to community foundations, and those rules will differ accordingly depending upon whether or not a community foundation has elected to be treated by the "expenditure test."
If the community foundation elects, all actions excluded from the lobbying definition may be carried out in-house by a community foundation without fear of any legal violation, and the special exceptions to the lobbying rules will apply.
Sabbaticals are not too uncommon in the nonprofit world for foundation executives or senior management. It can be a useful time to reflect on past accomplishments, revitalize, and gain renewed inspiration for future work. Sabbaticals for board members likewise can have similar positive effects but should be approached with care.
When to Think Twice
This article focuses on conflicts of interest around foundation investments. May foundation board members (or other closely affiliated individuals or businesses) manage foundation investments? May they be paid for this service? What factors should foundation managers consider before they select an investment manager who has a close relationship with the foundation? When is it a bad idea? What special procedures should be followed when a board member or other close affiliate is also an investment manager.
Directors & Officers liability insurance provides financial protection for a foundation and its directors, officers, employees, and volunteers in the event of a lawsuit.
A look at some of the legal and non-legal aspects of merging one charitable program or organization with another.
Ray S. Munney, executive director of the Zenith County Community Foundation, had three meetings scheduled Tuesday morning. The first was with the new manager of a local corporation's charitable funds. He'd called in a panic last week to say that he wasn't sure their company scholarship program was operating in compliance with IRS rules. Might the community foundation be interested in taking over the program?
Imagine the following scenarios:
- A donor advisor has not made a recommendation from a donor advised fund for two years.
- An agency has requested that your community foundation not make a distribution from an agency endowment until the agency requests a distribution at some point in the future.
- A fiscal sponsorship project has lost momentum and the funds are sitting unused.
Do you have a policy that guides how your community foundation handles these situations? If not, now is the time to put one in place.
Under the rules applicable to private foundations, directors or trustees and staff members may be reimbursed for reasonable and necessary expenses incurred in connection with the foundation's charitable activities. Such expenditures fall under the heading of administrative costs and will generally count toward the foundation's minimum distribution requirement, or payout.
Over the past decade or so, economies have become more global and the tools for communicating news from around the world have become more effective and timely in reporting global events via the internet, video and text messaging, Twitter, and Facebook, to name but a few of these tools. Foundations similarly are now faced with the challenges and opportunities of engaging an international community of stakeholders in their philanthropic endeavors. The relationships that a foundation forms with nonresidents and non-U.S.