Foundation Mentors
Resources
“Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has.”
-----Margaret Mead
Starting a Nonprofit
REVIEW:
"Jack Siegel--lawyer, accountant, management consultant, ---takes the putative director or officer of a nonprofit organization on a useful and often entertaining voyage throughout the realm of the tax-exempt organizations universe, pointing out its quirks, foibles, and legal liabilities along the way. His handbook will make mandatory--and arresting--reading for those who are already serving as trustees, directors, officers, and key employees of exempt organizations, particularly charitable ones. Siegel's goal, in which he succeeds, is to help directors and officers of nonprofit organizations 'make better decisions.' The book is full of large policy analyses and paragraphs on the details, such as board size, board committees, board meeting formats, the contents of minutes, and the duties of officers. REVIEW BY Bruce R. Hopkins.
Is a foundation for you? How do you start?
Mission and Goals A mission statement is an excellent first step for the operation of any organization. The mission statement helps focus the foundation and informs grantseekers, other foundations and the general public about what you plan to fund. You can use the mission statement as a first step toward both short- and long-range planning. The statement should help clarify your goals by setting forth the following: Grantmaking priorities Geographic focus for giving Types of organizations funded Projects that may be considered Other stipulations Mission statements can change over time. If the goals of the foundation evolve, the statement can be redrafted to reflect changes from the mission originally described. Most foundations choose to include their mission statement in their grant guideline. For sample mission statements and more information, order a free copy of The Family Advisor: Values, Visions, and Missions from the Family Foundation Services department at the Council on Foundations, 703/879-0600. Young Adult Philanthropy
Governance Issues Evaluating Charitable Recipients Disclosure and Substantiation Requirements Professional Organizations
Good governance is an essential element of a well run foundation that will be successful over geneations. For more information:
These organizations specialize in foundations and can provide information and networking opportunities.
Publications: Self Dealing and Other Topics
· Check This: The Checklist is a tool to see if a Foundation is operating in accordance with the relevant legal requirements and whether any modifications to foundation legal documents or procedures are needed.
· Self Dealing: A Precise Guide for Foundation Board and Staff
· Compensation for Foundation Directors and Trustees
· Best Practices in Determining Executive Compensation
· That's the Ticket: Issues when accepting and using tickets from grantees
· That's Still the Ticket
· Self Dealing Snares: An excerpt from the 3rd Edition of Company Foundations and the Self-Dealing Rules by Jane Noter.
· Directors and Officers Liability Insurance and Indemnification. Written for non lawyers, this booklet provides easy-to-understand descriptions of liability and D&O insurance. Its question-answer format offers answers to important questions such as: What are the real risks? How can these risks be minimized? What should one look for in a good D&O policy? How much coverage is needed?
· D&O Do's and Don'ts, Make the Most of your insurance coverage. To apply or not to apply—that’s the first question many foundations face when considering D&O insurance. But the questions don’t stop there. What types of activities do you disclose in the application process? Do you have any arrangements that might be considered unusual? Once you’re covered, what will increase your liability exposure? When do you report a complaint or lawsuit? This legal brief puts D&O insurance in perspective, providing an introduction to how
these policies work.
Taxable Expendiures
A taxable expenditure is an amount paid or incurred to:
- Carry on propaganda or otherwise attempt to influence legislation (commonly referred to as lobbying),
- Influence the outcome of any specific public election or carry on any voter registration drive, unless certain requirements (explained in Influencing elections and carrying on voter registration drives) are satisfied),
- Make a grant to an individual for travel, study, or other similar purposes, unless certain requirements (explained under Grants to individuals) are satisfied,
- Make a grant to an organization (other than an organization described in section 509(a)(1), (2), or (3) or an exempt operating foundation) unless the foundation exercises expenditure responsibility with respect to the grant, or
- Carry out any purpose other than a religious, charitable, scientific, literary, or educational purpose, the fostering of national or international amateur sports competition (with exceptions) or the prevention of cruelty to children or animals.
Investing
Donors expect a nonprofit to manage investments intelligently and successfully, to provide regular statements showing the assets of the trust and their performance, and to complete necessary tax and financial reporting satisfactorily.
- If you are the the trustee or recipient of income from a charitable trust, learn about investing assets wisely from Renaissance Financial in their CLT Handbook.
- Do you know how to write an investment policy? If not, read the book by Jack Gardner, How To Write An Investment Policy Statement, an easy read available at Amazon.com.
- In this booklet, the Commonfund Institute addresses the Principals of Nonprofit Investment Management.
- This article from the deals with the investment policies for charitable trusts and touches on endowment issues: Harvard Gift Newsletter
Training
Board Training: It is no longer enough for nonprofits to recruit volunteer board members simply by promising these volunteers will do good deeds. Increased scrutiny from donors, consumers and the federal government means that board volunteers must be well trained, accountable and aware of their fiduciary and governance roles.
- The Principles Workbook: Steering Your Board Toward Good Governance and Ethical Practice makes it easier for boards of directors and staff leaders to assess the areas where their organizations are doing well and where there is room for improvement.
- Lorman provides teleconferences on board training and effectiveness. http://www.lorman.com
Additional Resources
- Foundation Center
- Bridgestar Bridgestar connects job seekers and nonprofits. If you need assistance determining whether a specific candidate is the right fit for your organization’s culture and work style or if you are seeking a nonprofit job. Bridgestar can help.
- GuideStar
- Independent Sector
- Great Grants
Taxes
