FAIRFIELD, CT—January 30, 2014—Foundation Source, the nation’s largest provider of support services for private foundations, has developed an online Compliance Assessment for private non-operating foundations, freely accessible to any foundation at http://www.foundationsource.com/compliance-assessment/.
The online assessment – a short series of “yes/no” questions – helps private foundations remain compliant by identifying yellow-flag activities that could increase the foundation’s exposure to risk. These activities fall into areas around which IRS regulations can be particularly complex. Some of these areas include:
- Compensating disqualified persons
- Failing to meet the annual minimum distribution requirement
- Granting to foreign organizations
- Maintaining bank accounts outside the U.S.
- Making grants via an intermediary
- Overpaying foundation taxes
- Owning an interest in a privately held company or partnership
- Owning real estate
Once respondents submit their answers, they immediately receive a customized report via email that highlights the specific activities that could increase the foundation’s exposure to risk. In addition, the report clearly outlines and explains the specific rules governing each of those activities, as well as potential penalties for noncompliance.
According to Foundation Source Chief Legal Officer Jeffrey D. Haskell, “The tax rules governing private foundations can be complicated, and if foundations are not aware of these rules or don’t understand them, they expose themselves to risk. The goal in creating the Foundation Source Compliance Assessment, and making it freely available to anyone, is to help private foundations better understand and manage their potential exposure, while simultaneously being able to take full advantage of the many charitable advantages afforded by having a private foundation.”
About Foundation Source (www.foundationsource.com)
Foundation Source is the nation’s largest provider of comprehensive support services for private foundations, bringing unparalleled knowledge and expertise to clients across the country. The company’s administrative services, online foundation management tools, and philanthropic advisory services provide a total outsourced solution for private foundations. The result: better-run and more effective foundations. Our clients supply the funds, the vision, and the philanthropic goals; we take care of everything else.
Today, Foundation Source provides its services to more than 1,100 family, corporate, and professionally staffed foundations, of all sizes, nationwide. The company provides its services directly to philanthropically focused families and businesses as well as in partnership with the nation’s leading private wealth management firms, law firms, and accounting firms. Foundation Source is headquartered in Fairfield, Connecticut, with offices in Denver, Los Angeles, New York City, Philadelphia, San Francisco, South Florida, Washington, D.C., and Winston-Salem.