Foundation Source frees you to focus on your philanthropy by taking care of all the time-consuming, yet incredibly important back-office work that a well-run foundation demands. And we do it flawlessly.

We provide complete support for your foundation, so you can enjoy the rewards of your philanthropy. Our complete outsourced services – including active compliance monitoring, transaction processing, tax preparation and filing, and financial and regulatory reporting – take the work out of running a foundation. In collaboration with leading legal and tax professionals and in close coordination with the IRS, we’ve developed proprietary back-office systems and operating procedures that give you:

  • Real-time monitoring for potential compliance issues
  • Compilation of all foundation assets into one easy-to-read summary
  • Timely processing of grants, taxes, payroll, and more
  • Complete federal and state filings, including the 990-PF
  • Daily tracking of the annual 5% minimum distribution requirement
  • Integrated accounting and grantmaking in one system—no double entry

These systems enable you to have more impact, more convenience, and more enjoyment.

What Do You Get from Foundation Source?

When we say Foundation Source takes care of everything your private foundation needs, we really mean it! Our administrative services include the basics every foundation requires along with highly specialized services that support even complex, outside-the-box philanthropic strategies.

For every foundation we administer, we provide:

Administration and Governance

  • Undertake foundation recordkeeping
    • Funding and income
    • Expenses and fees
    • Assets and valuations
    • Grant history
    • Substantial contributors
    • Track annual 5% minimum distribution requirement
  • Archive corporate, tax, and other foundation documents
  • Manage online access rights

Compliance

  • Verify grantee’s 501(c)(3) public charity status
  • Provide USA PATRIOT Act due diligence
  • Identify supporting organizations
  • Monitor “Advance Ruling” expirations
  • Monitor grants and expenses to help prevent:
    • Self-dealing
    • Jeopardizing investments
    • Taxable expenditures
    • Excess business holdings, etc.
  • Monitor affiliations with other nonprofits
  • Track substantial contributors

 Transaction Processing

  • Process contributions to the foundation
  • Prepare grant checks and transmittal letters
  • Pay fees and expenses
  • Provide payroll services (if applicable)
  • Provide transaction accounting

Tax Preparation and Filing

  • Calculate and pay quarterly estimated taxes
  • Prepare and file federal 990-PF return
  • Prepare and file 990-T UBIT return as needed
  • Prepare Forms 1099 and 1042 for independent contractors
  • Prepare and make state filings
  • Provide donor substantiation receipts
  • Maintain tax records in foundation archive

Financial and Grant Reporting

  • Grant activity and transaction reporting
  • Expense reporting
  • Financial reporting

ADVANCED FOUNDATION MANAGEMENT

Our specialized services can help you use every IRS-sanctioned capability of your foundation.

Specialized Grantmaking Services

  • Expenditure responsibility grants
  • Equivalency determination
  • International granting
  • Program-Related Investments and recoverable grants
  • Scholarship, fellowship, and award programs
  • Direct charitable activities
  • Set-asides

Specialized Compliance and Tax Services

  • Compensation benchmarking
  • Transition-year tax returns and amended tax returns
  • Audit support (not IRS audit)
  • Limited partnership, trust, and S-corporation investments
  • Foundation DBA (doing business as) filings

Resource:

Options for Managing a Private Foundation