It is important to develop-and stick to-clear foundation policies on expenses. State regulators tell us that when they examine a foundation's expenditures, they look for evidence that foundation managers have thought about the various areas in which expenses arise and have developed a reasonable policy to guide spending. Following are some of the questions that may be raised when considering what administrative expenses the foundation will cover for employees and directors who travel on behalf of the foundation.
Staffing decisions are among the most important decisions that foundations will make. Foundation staff are responsible for executing organizational strategies and advancing the foundation’s mission; without strong and competent employees, the foundation may be left floundering. In human resource decisions, foundations must assess needs; recruit, screen, select, and hire personnel; orient new employees; and develop evaluation, training, and development strategies for long-term growth.
In-Depth knowledge on Staff Administration
The relationships that a foundation forms with nonresidents and non-U.S. institutions have many potential implications for the foundation, the nonresident, and the non-U.S. institution. This article focuses on FAQS regarding visa and immigration questions.
The Internal Revenue Code provides excise tax penalties that can be imposed by the Internal Revenue Service whenever unreasonable or excessive compensation is paid to high-level employees of charitable organizations. Over and above any legal requirements or public scrutiny, good stewards of philanthropic resources should go the extra mile to be certain that levels of compensation are reasonable. Thus, the Board of Directors of the Council on Foundations strongly urges all foundations to take great care in reviewing and approving the total executive compensation paid to all high level employees, particularly the top executive. When examples of excessive compensation come to light, they receive considerable media attention and negatively influence the perception of foundations and other charitable organizations in the minds of elected officials, their staff members (especially on Capitol Hill) and the general public. Most frequently, the examples that are publicized involve compensation paid to the president or chief executive officer.
Joining a foundation staff can be exhilarating as well as challenging. Often, newcomers find themselves trying to balance many different demands, while trying not to let any one thing fall by the wayside. To fulfill the missions of foundations, it's important not just to get the day-to-day tasks done. We must take the time to make sure newcomers to the foundation world are ready to take on and meet the challenges of the job.