Topic

General Accountability and Compliance (Grantmaking)

General Accountability and Compliance (Grantmaking)+context

Private foundations must be accountable to the public because foundation donors and the institutions they create receive important tax benefits and are consequently required to serve valid public purposes as defined by law. Foundations are stewards of public as well as private trusts, and must reflect this stewardship in everything they do. - GOSW and Forum of Regional Associations of Grantmakers Amy Sample Ward

+resources and best practices

General Accountability and Compliance (Grantmaking)+best practices

Foundation Self-Dealing Resources

Foundation News & Commentary

That's the Ticket by Jane C. Nober

"Accepting and using tickets and other tangible benefits of more than minimal value raises questions for foundation managers." This article looks at what the tax code rules say is acceptable. From the May/June 1998 edition.

http://www.foundationnews.org/CME/article.cfm?ID=1418

Council Columns

That's Still the Ticket by Andrew C. Shulz

This was written in the summer of 2004 as a follow-up to the article "That's the Ticket" (link above).

http://www.cof.org/Action/content.cfm?printerfriendly=no&itemnumber=1220&gmdebug=no&pf=1

Foundation Self-Dealing: What Every Grantmaker Should Know

Minnesota Council on Foundations

From the April/May 2004 edition of MCF Notes, addressing the basics of self-dealing.

http://www.mcf.org/publictrust/wegsk_selfdealing.htm

Focus on Foundations (PDF)

A Primer on the Self-Dealing Rules for Private Foundations

In the fall 1997 edition of Focus on Foundations, the article reviews the basic rules regarding self-dealing.

http://www.quarles.com/files/Publication/7f01cc04-68f3-4ed4-83d7-0323d4726125/Presentation/PublicationAttachment/e4e14a69-b145-4000-92d1-0ed946ce361f/Focus%20on%20Foundations%20Vol%205%20No1.pdf

Kate Cassidy

Forum of Regional Associations of Grantmakers

Self-Dealing: A Concise Guide for Foundation Board and Staff
This guide covers the basics of foundation self-dealing, including key definitions, common problem areas, exceptions and penalties, and recommended steps for handling self-dealing issues.
http://www.givingforum.org/policy/accountability-selfdealing.html

Taxes on Self-Dealing
Internal Revenue Service
http://www.irs.gov/charities/foundations/article/0,,id=137678,00.html

Tread Carefully When Sharing Board Members With Grantseekers
Council on Foundations
A summary of self-dealing issues that may arise when foundation board members also serve on the boards or staffs of grantseeking charities.
http://www.cof.org/Content/General/Display.cfm?contentID=172

Should Your Foundation Cover Travel Expenses of Family Members?
Council on Foundations
Guidance on the legal and ethical considerations regarding a foundation paying travel and related expenses for children and other family members who are not currently board members or staff.
http://www.cof.org/Content/General/Display.cfm?contentID=3204

Megan Wentworth

For Additional Resources, please see the Self-Dealing section of the Grantmakers of Oregon and Southwest Washington website:

http://www.gosw.org/grant/makers/info/self_dealing

General Accountability and Compliance (Grantmaking)+standards in field

Comprehensive Resource by DJB & Forum of Regional Associations of Grantmakers

DJB Consulting originally developed this list of foundation accountability resources to accompany the Accountability Self-Assessment tool for Private Foundations, which we created for the Forum of Regional Associations of Grantmakers. The tool helps private foundations assess how well they are engaging in generally recommended good practices for being accountable to the public.
http://www.djbconsultingservices.com/resources/

This is the most comprehensive resource out available. Updated 4.2008

Megan Wentworth

Nonprofit Sector Strategy Group
Click here to download "Foundation Accountability and Effectiveness" published by the Aspen Institute in 2002
http://www.aspeninstitute.org/site/c.huLWJeMRKpH/b.612417/k.5449/Nonprofit_Sector_Strategy_Group.htm

Amy Sample Ward

Urban Institute
Click here to download "Beyond the Jitters" from the Foundation Media Relations Project published in 2002
http://www.urban.org/publications/310524.html

Amy Sample Ward

Forum of Regional Associations of Grantmakers

Obedience to the Unenforceable: Ethics and the Nation's Voluntary and Philanthropic Community (PDF)
Independent Sector
This report explains why and how nonprofit and philanthropic organizations need to promote sound ethical behavior.
www.independentsector.org/PDFs/obedience.pdf

Good Governance: The Devil Is in the Details
Independent Sector
William S. White, chairman, president, and CEO of the Charles Stewart Mott Foundation, uses his foundation’s experiences to show the commitment it takes to create an ethical, transparent organization.
www.independentsector.org/members/perspectives505.html

The New Foundation Guidebook
Association of Small Foundations
This publication contains articles and advice from over 40 foundation representatives and experts, and includes chapters on vision & mission, the board of directors, tax & legal issues, administration, financial & investment management and grantmaking. Available for purchase.
www.smallfoundations.org/programs/new_foundation_guidebook

Foundation in a Box
Association of Small Foundations
An online and print collection of materials designed for smaller foundations, covering the basics of foundation boards, investments, administration, grantmaking, taxes and legal issues. Available for purchase.
www.foundationinabox.org

Splendid Legacy: The Guide to Creating Your Family Foundation
National Center for Family Philanthropy
This publication offers practical advice on setting up a family foundation, covering such topics as creating a mission, choosing a board, establishing a grantmaking program and developing communications strategies. Available for purchase.
www.ncfp.org/publications-splendid_legacy.html

Common Concerns: Current Issues Affecting Family Foundations (PDF)
National Center for Family Philanthropy
This essay examines basic issues common to all family foundations in the areas of management, governance and grantmaking mission.
www.ncfp.org/publications-passages-commonconcerns.pdf

Foundation Operations and Management Survey
Association of Small Foundations
This annual report provides useful benchmarking data on boards, investment, administration and grantmaking for foundations with under $50 million in assets. Available for purchase.
www.smallfoundations.org/programs/annual_member_survey

Handbook on Private Foundations
Council on Foundations
This handbook covers every aspect of managing a private foundation, including legal issues, public relations, investment management, grantmaking basics and more.
www.cof.org/publications

Rules of the Road: A Guide to the Law of Charities in the United States
Council on Foundations
This master reference covers the legal fundamentals governing U.S. grantmaking, including tax laws, U.S. Treasury regulations and IRS rules. Available for purchase.
www.cof.org/publications

Compliance Guide for 501(c)(3) Tax-Exempt Organizations (PDF)
Internal Revenue Service
This publication presents general compliance guidelines for recordkeeping, reporting and disclosure requirements for 501(c)(3) organizations.
www.irs.gov/pub/irs-pdf/p4221.pdf

Top 10 Ways Independent Foundations Get Into Trouble
Council on Foundations
Highlights the most common legal missteps for independent foundations to avoid. Available for purchase.
www.cof.org/publications

Top 10 Ways Family Foundations Get Into Trouble
Council on Foundations
Highlights the most common legal missteps for family foundations to avoid. Available for purchase.
www.cof.org/publications

Top 10 Ways Corporate Foundations Get Into Trouble
Council on Foundations
Highlights the most common legal missteps for corporate foundations to avoid. Available for purchase.
www.cof.org/publications

The Nonprofit Legal Landscape
BoardSource
Designed for executives and board members, this book provides a comprehensive explanation of the laws and legal concepts that affect nonprofit organizations. Available for purchase.
www.boardsource.org/Bookstore.asp

Foundations and the Law
Council on Foundations
This presentation handout provides an introduction to the basic legal concepts and issues for foundations.
www.cof.org/files/Documents/WebNotebook/December2003/03_DC_ING_Handouts.doc

Life Cycle of a Private Foundation
Internal Revenue Service
This online guide outlines the key federal tax rules and requirements for private foundations during their typical “life cycle.”
www.irs.gov/charities/charitable/article/0,,id=127912,00.html

Five Tips for Keeping a Small Charity Out of Legal Hot Water
Chronicle of Philanthropy
In this article, several lawyers who counsel nonprofit organizations describe some of the most common types of legal trouble their clients face — and how best to avoid those pitfalls.
www.philanthropy.com/jobs/2004/08/19/20040819-50109.htm

Legal Essentials for Small Foundations
Association of Small Foundations
This primer gives an overview of the most important laws governing private foundations. Available for purchase.
www.smallfoundations.org/programs/primer_series

Megan Wentworth