Leading Corporate Philanthropy

I can’t believe the month of May is almost over and I am embarking on my 60th day at the Council! I have enjoyed meeting various corporate foundations and hearing about the amazing work you are leading across the country during my first two months. This week, I met with Tiffany & Co. to learn about their leadership in coral conservation; listened to Pfzier and PVH’s innovative approaches to corporate volunteerism; and dove deep into conversation with JP Morgan Chase about their commitment to scaling global workforce development initiatives.

Earlier this week, we held a webinar on tax reform and its effect on corporate foundations, an area that many corporate members have asked about since the beginning of the year. During the webinar, the Council’s Senior Counsel, Suzanne Friday, discussed a range of issues, including a provision that was recently passed in connection with the federal budget and now provides an important exception to the excess business holding rule for private foundations.

Many businesses set up related charitable organizations for the purpose of engaging in philanthropic endeavors supported by the company. Because the funding for these charitable organizations is derived primarily from contributions from the business, these entities typically are unable to qualify as public charities and instead qualify as private foundations. This chapter of Mastering Foundation Law explores the special issues faced by corporate foundations as a result of their close relationship with their founding business.