Legal Compliance Guidance

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All information on this website, and all publications, articles, email correspondence, and telephone consultations provided by Council attorneys and legal staff are intended for informational purposes only and not as part of an attorney-client relationship. Council attorneys are not licensed in every state and cannot provide legal representation. The information is not a substitute for expert legal, tax, or other professional advice tailored to your specific circumstances and may not be relied upon for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code. Council members may email legal@cof.org with inquiries and for more information.

Displaying 65 - 80 of 171 results

International Corporate Giving

Legal Compliance Guidance, Fundamentals
This brief provides practical advice on setting strategy, ensuring on-the-ground presence, and selecting partners for U.S.-based companies with foundations and/or giving programs that are either venturing into the international giving arena or seeking to enhance their current programs. The last…

Supporting Employee Volunteerism

Legal Compliance Guidance
Question: May a private company foundation support the volunteer activities of the sponsoring corporation's employees? Answer: Company foundations sometimes play a role in coordinating volunteer activities of the sponsoring corporation's employees. The IRS has approved company foundations'…

Reporting Direct Charitable Activities

Legal Compliance Guidance
Question: Our company foundation sometimes carries out its own charitable programs. For example, last year we organized a conference on the topic of evaluating program impact for our grantees and other nonprofits in one of our communities. Where does this information get reported on our Form 990-…

Public Disclosure of Form 990-PF

Legal Compliance Guidance
Question: Our staff just received a request for a copy of our foundation's Form 990-PF. Are we required to provide this information? Answer: Yes. A foundation’s tax return on Form 990-PF provides a wealth of information about the organization including asset size, board members, salary information…

Private Foundation Excise Tax Rates

Legal Compliance Guidance
The Pension Protection Act of 2006 (PPA) increased the excise tax rates for violations of many of the private foundation rules. In most cases, the first-tier taxes were doubled. These changes are effective for private foundations upon the foundation’s first tax year beginning after August 17, 2006…

Membership Dues and Self-Dealing

Legal Compliance Guidance
Question: Why do Council on Foundations membership materials and invoices state that if my foundation and corporate giving program share a membership, dues must be paid by the corporation? Is this true for other memberships as well? Answer: IRS self-dealing rules prohibit private foundations (…

Mandatory Electronic Filing for Form 990 and 990-PF

Legal Compliance Guidance
Question: Are corporate foundations required to file electronically the 2006 Form 990 or Form 990-PF? Answer: Whether or not a corporate foundation is required to file electronically depends on a number of factors. Generally, only foundations with a substantial number of employees or consultants…

Sharing Office Space

Legal Compliance Guidance
Question: Can a company provide office space to the company foundation? Answer: A parent company can always provide the company foundation with office space as long as it does so free of charge. While it is even possible for the parent company and the foundation to share the cost of office space…

How to Avoid Commingling

Legal Compliance Guidance
Question The same company representatives serve on our company foundation board of directors and our Corporate Contributions Committee. Can we hold the meetings for both programs simultaneously? Answer No. While it is possible to hold the meetings for the corporate giving program and company…

Honoring Grant Commitments amid Difficult Corporate Finances

Legal Compliance Guidance
Question: In light of current economic conditions, the corporation has asked whether the company's private foundation may honor grant commitments already made by the corporate giving program. Can the private foundation make these grants? Answer: Maybe. The facts and circumstances surrounding the…

Corporate Foundation Grants to Government

Legal Compliance Guidance
Question: May corporate grantmakers make grants to units of government such as public schools or local parks departments? Answer: Yes, both corporate giving programs and corporate foundations may make grants to units of government as long as the grants are restricted to charitable purposes. What…

Corporate Foundations and Grants to Non-Charities

Legal Compliance Guidance
Question: May our corporate foundation or corporate giving program provide a grant to an organization that is not a charity? Answer: Yes, but the process required to make a grant to a non-charity depends on the type of corporate giving vehicle used to make the grant. Private foundations must…

Grantmaking Options for Corporate Philanthropies

Legal Compliance Guidance
Question: We are trying to decide how to structure our grants programs between our direct-giving program and our corporate foundation. Are there any general guidelines to help us? Answer: Many factors influence how to allocate grantmaking programs between a corporate giving program and a…

Funding a Dissolving Nonprofit

Legal Compliance Guidance
Question: Our foundation has been funding a local nonprofit for the last ten years. The nonprofit has one full-time employee and an annual operating budget of about $300,000. The nonprofit recently requested a $50,000 grant for operating expenditures or it will have to close down immediately. Even…

FAQ: Fiscal Sponsors

Legal Compliance Guidance, Fundamentals
We just received a grant request from a group that is not a public charity. The request states that the group has a “fiscal sponsor” and the grant agreement is countersigned by the fiscal sponsor? Can we make this grant? Yes. A grant to a public charity serving as a fiscal sponsor is treated like…

Establishing a Scholarship Fund for Corporate Employees

Fundamentals, Legal Compliance Guidance
Question: Our corporate foundation is planning to establish a scholarship fund for our employees' children. What do we need to keep in mind and what steps do we need to follow to ensure we are complying with the legal requirements? Response: The granting of scholarships, fellowships, and…

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