Policy on Self-Dealing (Anonymous Family Foundation)
Posted on June 19, 2015 by Anonymous
Sample self-dealing policy from an anonymous family foundation… Read More
Rules, regulations, and legal documents
Avoiding Avoidance: Addressing and Managing Conflict in Family Philanthropy
Posted on June 9, 2015 by Elaine Gast Fawcett
Conflict is normal in any family or organization. In this issue of Passages, you’ll learn about the most common conflicts in family philanthropy, the creative “tactics” some boards use to perpetuate the avoidance, and how you can use simple tools to address conflict in a healthy, productive way… Read More
Can the Foundation Reimburse Expenses for a Family Gathering That Takes Place During a Board Meeting?
Posted on June 5, 2015 by Andras Kosaras
A foundation may only incur expenses for meetings/events that are related to carrying out its exempt purposes (including reasonable and necessary administrative expenses). If a board member wants to invite all board and family members to a family event, the foundation may only reimburse the board member for the expenses incurred if the event is for the purposes of the… Read More
Can You Avoid Conflict of Interest and Have the Family Office CFO on the Investment Committee?
Posted on March 18, 2015 by Andrew Schulz
Yes. Conflicts of interest of this type come up all the time. You shouldn’t try to avoid conflicts, because they’re impossible to avoid. At some point, they will come up. The way to handle a conflict is to be trained about what may come up, to be very clear about disclosing them, and to make sure that disinterested, non-conflicted people… Read More
The Better Boardroom: a Complimentary Lunch Seminar for Giving Families (Chicago)
Posted on February 25, 2015
Family foundations are a breed apart. The impact of family structure and dynamics on how a foundation is governed is enormous and consistently underestimated. Join us for an overview of how to truly integrate the family into family foundation governance. The program will cover these essentials: Forgotten factors – how family dynamics, family size and family structure should guide decisions… Read More
Can We Accept Complimentary Tickets?
Posted on January 9, 2015 by Andrew Schulz
Complimentary tickets are fine. The real issue here is: are they really complimentary, or is it a quid pro quo? Generally, if there’s a good foundation reason to be there, in particular being recognized, you can go. … Read More
Can a direct descendant who is on the board bring non-family members on to the board to work for him or her?
Posted on December 11, 2014 by Andrew Schulz
You’d have to check the bylaws and what the procedure is. Who and who can’t serve on the board is a matter of foundation policy. There’s no law that prevents non-family members from being on the board, but you should be very careful to observe the rules and policies set forth in your bylaws or your articles about the election… Read More
May Our Board Pay a Disqualified Person for Services Such as Portfolio Management?
Posted on December 11, 2014 by Andrew Schulz
May our board pay someone for portfolio management if they are an employee of a company owned or led by a board member and direct descendant of the foundation’s father? Yes, even if the individual being employed to do that work is a disqualified person, paying someone reasonable and necessary compensation to manage the assets of the foundation, regardless of… Read More
Is it Self-Dealing to Give a Grant to a Specific Child’s Tuition?
Posted on December 11, 2014 by Andrew Schulz
A trustee wants to give a grant for their child to attend a private school. The trustee then instructs the school, a legal 501(c)(3), to apply to the foundation for a scholarship grant that will be applied to the specific child’s tuition. Is this self- dealing? This is self-dealing. You’re absolutely prohibited from making a payment that would be earmarked… Read More
Can the Foundation Pay Rent to the Family Office?
Posted on December 11, 2014 by Andrew Schulz
The foundation may not pay rent to the family office, because the family office is considered a disqualified person, and that’s not a personal service. However, a foundation and a family office can share office space, provided that the person to whom the foundation is paying rent, i.e., the landlord, is not a disqualified person. So, if it’s a third-party… Read More