Rules, regulations, and legal documents

Are Nieces and Nephews Considered Disqualified Persons?

Posted on December 11, 2014 by Andrew Schulz

Are nieces and nephews of board members, foundation founders, considered disqualified or are just the direct blood descendants disqualified? Nieces and nephews of board members are not considered to be disqualified persons; however, in the family foundation context, you also have to go back to who the substantial contributors were. For instance, your niece may be a direct bloodline of… Read More

If a Family Member is an Employee of a Non- Profit Funded by the Foundation, Does it Matter How Long the Person Has Worked There?

Posted on December 11, 2014 by Andrew Schulz

If a family member is an employee of a non-profit funded by the foundation, does it make any difference how long the person has worked there? No, it really doesn’t. The only issue is if it appears on its face that the only reason you’re writing the grant is so your son will get hired by the non-profit. That would have… Read More

Can a Foundation Fund a Non-Profit Where a Family Member is Employed?

Posted on December 11, 2014 by Andrew Schulz

Yes, as long as the grant isn’t earmarked for their compensation. However, consider an example where the total operating budget of the non-profit is $250,000, of which $100,000 is their compensation, and you provide a $200,000 grant. You’re really getting into an indirect self- dealing possibility where, as a matter of fact, you are paying their salary and it’s unavoidable… Read More

What Kinds of Financial Expenses Do Not Count Toward the 5% Payout?

Posted on December 11, 2014 by Andrew Schulz

With the exception of expenses for the management and product of income, all charitable expenses – including the cost of preparing the foundation’s 990-PF – count towards the payout. So, whether it’s rent, utilities, travel-related expenses, grants, contracts with consultants, or other such expenses – everything that you spend, other than investment management expenses, count towards the payout. The exception to… Read More

Board officer roles and responsibilities

Posted on December 8, 2014 by Anonymous

Officers shall be elected or appointed annually by the Trustees; and each officer shall hold office for a term of one year or until a successor is elected and qualifies. There shall be no limit on the number of successive terms of office for which an officer may serve. Chair The Chair and Vice-Chair offices shall each be held by… Read More

Investment Policy (The Wallace Foundation, 2021)

Posted on June 18, 2014 by The Wallace Foundation

The investment goal of The Wallace Foundation (the Foundation) is to earn a total return that will provide a steady stream of income to fund the grant making and operations of the Foundation in support of its mission while preserving the real or inflation-adjusted value of the Foundation’s total investment assets (the Total Portfolio) over long periods of time… Read More

Whistleblower policy for board members (The Wallace Foundation)

Posted on June 18, 2014 by The Wallace Foundation

If a Foundation board member becomes aware of or has a reasonable good faith belief that the Foundation may be involved in illegal activity, fraud or violation of organization policy (as defined in Exhibit 1), or if the board member suspects any impropriety regarding the Foundation’s accounting methods, internal controls, audit processes or any other financial matter, the board member should immediately report such concern (“suspected wrongful act”) to the Senior Counsel or the Chair of the Audit Committee… Read More

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