Private Operating Foundations

Operating foundations are private foundations that use the bulk of their income to provide charitable services or to run charitable programs of their own. They make few, if any, grants to outside organizations. To qualify as an operating foundation, specific rules, in addition to the applicable rules for private foundations, must be followed.

Below is everything on our site for private operating foundations. You can use the filtering options on the right to narrow these results.

What is the five percent payout requirement?

Each year, every private foundation must make eligible charitable expenditures that equal or exceed approximately five percent of the value of its endowment. The purpose behind the minimum payout requirement contained in Internal Revenue Code Section 4942 is to prevent foundations from simply receiving gifts, investing the assets, and never spending any funds on charitable purposes. The basic rule can be stated simply, but its calculation is complex.

Both the board and CEO advance each foundation’s mission. They hold different responsibilities, but they need to support and balance each other.

Sample form that might be used by the Board to evaluate the Chief Executive. This sample should be customized to the particular culture and purpose of the agency by modifying the performance criteria as appropriate for the organization, inserting those criteria, and conducting the evaluation using the updated criteria.

Violence affects all aspects of life and results in considerable physical, emotional, social, and economic consequences. The statistics are hard to ignore:

The Council on Foundations’ Foundation Management Series provides foundation boards and staff with the tools needed to benchmark their practices and operations against peers in the field. Containing data from the Council’s 2009 Foundation Management survey, the series consists of three reports: Board Composition and Compensation, Administrative and Investment Expenses, and Fiscal Oversight.

Board Composition and Compensation

Board Composition and Compensation offers findings on foundation policies regarding board compensation and diversity.

Toward Creating a More Informed Public

What is nonprofit media?

Nonprofit media groups are organizations that seek 501(c)(3) tax-exempt status as public charities. These diverse organizations serve a valuable role in educating citizens through in-depth public interest reporting, including investigative journalism, news reports, explanatory journalism, solutions journalism, and specialty journalism, in order to elevate important social topics, particularly at the local level.

How is the Council involved?

Foundations often play an essential role in disaster relief and recovery. Not only do foundations provide grants and help raise money, they also use their experience and expertise to help civic leaders and responders distribute aid and rebuild communities.

Our disaster grantmaking resource page provides a primer on disaster philanthropy and access to an array of resources from Council members and peer organizations to assist in the three phases of disaster response and recovery:

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