As a benefit of membership, the Council on Foundations attorneys and legal staff provide information and education to Council members regarding a variety of topics related to foundation operations and legal compliance. All information on this website, and all publications, articles, e-mail correspondence and telephone consultations provided by Council attorneys and legal staff are intended for informational purposes only and not as part of an attorney-client relationship. Council attorneys are not licensed in every state and cannot provide legal representation. The information is not a substitute for expert legal, tax or other professional advice tailored to your specific circumstances, and may not be relied upon for the purposes of avoiding any penalties that may be imposed under the Internal Revenue Code.
Rules of Advocacy & Lobbying: Private Foundations
Legal Compliance Guidance
The rules of advocacy and lobbying for private foundations differ somewhat from community and public foundations.
As a private foundation, the law allows the following:
Advocacy
Lobbying
Funding Lobbying
Advocacy
Yes, private foundations may engage in advocacy activities as described under…
Foundations for Civic Impact: Advocacy and Civic Engagement Toolkit for Private Foundations
Toolkit
This toolkit is designed for private foundations that want to support grantee involvement in civic and policy activities to increase organizational capacity and impact. While its primary focus is on the grantmaking activity of foundations, the toolkit also addresses rules and guidance for policy…
Foundations for Civic Impact: Advocacy and Civic Engagement Toolkit for Community Foundations
Toolkit
This toolkit is designed for community and public foundations that want to support grantee involvement in civic and policy activities to increase organizational capacity and impact. While its primary focus is on the grantmaking activity of these foundations, the toolkit also addresses rules and…
Dos and Don'ts of Contact Between Company Foundation Employees and Legislators
Legal Compliance Guidance
Companies and their private foundations must carefully navigate the dos and don’ts of contact between foundation employees and legislators.
How should the company foundation's grants and activities fit into the sponsoring company's efforts to develop strong relationships with government officials…
Sample Conflict of Interest Policies from Council Members
Sample Document
Sample conflict of interest policies from the Community Foundation of Switzerland County and Triangle Community Foundation.
Conflicts of Interest and Form 1023
Legal Compliance Guidance
Ordinarily, established private foundations and public charity grantmakers would ignore the IRS's revision of Form 1023, Application for Recognition of Exemption from Federal Income Tax. After all, these groups have already received their determination letters. But the revised Form 1023 and the…
Conflicts of Interest: Dealing with Foundation Investments
Legal Compliance Guidance
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…
Can a Foundation Lawyer Serve as a Foundation Trustee?
Legal Compliance Guidance
This article explores one of the more common questions about conflicts of interest: May the foundation's lawyer serve as a trustee?
Foundation Lawyer/Trustee
Often, the lawyer who drafted a foundation's organizing documents stays on as counsel to the organization. He or she may be asked to serve…
Council-Endorsed D&O Insurance Program
Legal Compliance Guidance
Directors & Officers liability insurance provides financial protection for a foundation and its directors, officers, employees, and volunteers in the event of a lawsuit.
Does your foundation need D&O insurance?
A foundation doesn't have to be in the wrong to be sued. D&O insurance…
Guide to Directors and Officers Liability Insurance
Fundamentals
For boards of directors, trustees, and foundation managers, there are few areas of operation that cause more confusion and uncertainty than indemnification and the purchase of directors and officers (D&O) liability insurance. And it is no wonder. Mixing the often impenetrable statutory language…
Nonprofit Mergers
Legal Compliance Guidance
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…
Creating an Inactive Funds Policy
Legal Compliance Guidance
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…
U.S. Foundation Employment and Payment of Foreign Nationals and Students
Legal Compliance Guidance
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…
Component Funds: The Absence of Material Restrictions
Legal Compliance Guidance
This document outlines the basics of component funds, field of interest funds, donor-advised funds, and restrictions around these funds.
Intermediate Sanctions Regulations Checklist
Legal Compliance Guidance
The intermediate sanctions rules prohibit tax-exempt organizations from providing more than fair market value economic benefits to their “disqualified persons.”
The intermediate sanctions rules apply to all section 501(c)(3) and section 501(c)(4) organizations except for private foundations, which…
Covering Travel Expenses of Family Members
Legal Compliance Guidance
The Stewardship Principles for Family Foundations encourage foundations to provide orientation and training for new board members and professional development for existing board members and staff. They also encourage planning for leadership continuity through activities that identify, educate and…