| Forum of Regional Associations |
 Project Streamline [pdf]
Project Streamline seeks to improve grant application and reporting. It is a collaborative initiative of the Grants Managers Network, in partnership with the Association of Fundraising Professionals, the Association of Small Foundations, the Council on Foundations, the Forum of Regional Associations of Grantmakers, the Foundation Center, Grantmakers for Effective Organizations, and the National Council of Nonprofit Associations.
This study describes the burdensome nature of grant application and reporting practices and recommends how foundations can change in order to relieve this burden.
The Forum of Regional Associations of Grantmakers’s Effectiveness and Accountability initiative enables regional associations to provide grantmakers necessary educational resources to assist foundations in dealing with the critical issues surrounding accountability and effectiveness.
Below are the articles produced as educational resources and an inventory of existing accountability and effectiveness resources that have been created by our colleague organizations. The following priority issue areas persued were: advocacy, compensation, conflict of interest, self-dealing, the 990-PF, board governance, administrative expenses, payout, and communications.
Increasingly, foundations are moving beyond traditional third-party outcome studies toward more performance-centered approaches that provide foundations and their grantees with current information and actionable insights. FSG’s report highlights real-life examples of successful evaluation efforts from more than two dozen foundations of all sizes. What unites these examples is their simplicity, clarity of purpose, and forward-looking nature. Each involves a pragmatic effort to gather knowledge in order to improve decision-making and shape future behavior.
FSG’s report is intended to distill the learning and experience of foundations that have used evaluation effectively in order to provide clear guidance to those that are still searching for useful practices.
From Insight to Action: New Directions in Foundation Evaluation [pdf]
The origin of the rules against self-dealing for private foundations stems from the enactment of Section 4941 of the Internal Revenue Code as part of the Tax Reform Act of 1969. The self-dealing rules were just one of a series of prohibited actions initiated by Congress at that time to address negative activities by private foundations, and they allow the IRS to levy excise taxes on the foundation and (in some cases) on foundation managers when various prohibited activities occur.
Whether the donor to a private foundation is an individual, a family, or a for-profit company, it is important to understand that once cash or other assets are gifted (or bequeathed) to a private foundation, those assets then belong to a separate legal entity that is subject to many restrictions. Said as plainly as possible: “It’s not your money anymore.”
Self-Dealing: A Concise Resource for Foundation Board and Staff [pdf]
A conflict of interest arises whenever the “financial or personal interests” of a board member or foundation manager are, or appear to be, inconsistent or at odds with the interests of the foundation.
Learn more about conflicts of interest: how they arise, what to do about them, and how to develop and implement a conflict of interest policy.
Conflicts of Interest at Foundations: Avoiding the Bad and Managing the Good [pdf]
As foundations, you are encouraged to be transparent in your operations in order to enhance your reputation in the community and to avoid legal and regulatory scrutiny. But what does it mean to be transparent? Who are your target audiences, what should you share with them, and what communications vehicles can you use to accomplish your goals? And finally, is transparency really a step towards being a more effective grantmaker?
Communications/Disclosure Assessment [doc]
Communications/Disclosure Resources [doc]
In this era of increased scrutiny of foundation operations philanthropic organizations must do everything possible to ensure that they are operating in an ethical and transparent manner. Those in leadership positions have an especially important role in promoting organizational effectiveness and improving grantmaking practices.
Board Chairs and Governance Committees: Teleconference [recording]
What is advocacy? (Hint: it is more than just lobbying.) What is a private foundation and how is it different from a public charity? Can private foundations lobby? What about public foundations? What lobbying provisions should a foundation include in grant agreements?
Foundations and Advocacy: Webinar
When it comes to reporting administrative expenses, there are some clear-cut rules and regulations, and then there are issues around which there are lots of questions and unfortunately, not many easy answers.
- What should a foundation count as administrative expenses?
- Are there any dependable benchmarks?
- How do you classify direct vs. indirect costs?
- How will the current legislation affect reporting in the future?
Understanding Administrative Expenses: Teleconference [recording]
No longer just a report to the IRS, the 990-PF is now the most commonly used data source about nonprofits. Reporters, researchers, grantseekers - and many others - look to these forms for information about an organization. This makes accurate numbers, correct entries, and properly worded descriptions more important than ever. This educational program focuses on the most important aspects of filling out the 990-PF, with a special focus on common errors and potentially misleading entries.
2007 Version of the 990-PF Form [pdf]
10 Common Errors to Avoid in Completing a Private Foundation's Form 990-PF [pdf]
What You Should Know Before Signing Your Organization's Form 990-PF [pdf]
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