A private foundation is a remarkably powerful vehicle for charitable giving. With power, however, comes responsibility. Private foundations are legal entities that are subject to sound governance and business practices as well as federal and state regulations. To be a successful and well-run foundation takes more than a checkbook and a spreadsheet. It takes knowledgeable leaders, transparent processes for oversight and accountability, documented policies, and attention to detail. The effort required might seem daunting, but it does not have to be—especially with help from qualified advisors.
This booklet is intended to be a basic guide to managing a well-run foundation. You may want to review these suggestions with your tax preparer, investment advisor, attorney, or other advisors to be sure that you are compliant with state and federal requirements.