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Category Archives: Grantmaking & Social Investing

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IRS Releases Revenue Procedure 2017-53 on Foreign Public Charity Equivalence Determinations

Posted in Grantmaking & Social Investing, International Charitable Transactions & Operations, Private Foundations, Public Charities

Yesterday, September 14, 2017, the IRS released Revenue Procedure 2017-53, which international grantmakers and their tax advisors have eagerly awaited.  As background, private foundations making grants directly to foreign organizations generally must use one of two grantmaking procedures―expenditure responsibility or foreign public charity equivalency.  (The latter is known as “FPCE” for short, and also sometimes… Continue Reading

Final PRI Regulations Released

Posted in Grantmaking & Social Investing, Private Foundations, Social Enterprise

The Treasury Department and Internal Revenue Service yesterday released final regulations on private foundation program-related investments. These regulations put in final form nine examples of investments that qualify as PRIs, initially proposed by the IRS in 2012. The White House has been enthusiastic about impact investing as a tool to further social and charitable objectives,… Continue Reading

Treasury Releases Final Regulations for Private Foundations Making International Grants Using Foreign Public Charity Equivalence Determinations

Posted in Grantmaking & Social Investing, International Charitable Transactions & Operations, Private Foundations

Treasury will release tomorrow final regulations regarding private foundations and their use of a process called “foreign public charity equivalence” or “equivalency determination.” Treasury’s hope in issuing these regulations is to facilitate international grantmaking while ensuring that foundation equivalency determinations are appropriately made. Background and 2012 proposed regulations. As explained in a prior post, before… Continue Reading

IRS Clarifies Position on Private Foundation Mission-Related Investments Under Section 4944

Posted in Grantmaking & Social Investing, Private Foundations, Social Enterprise

In Notice 2015-62 issued on Tuesday, the IRS explained that a private foundation and its managers will not necessarily be penalized under Internal Revenue Code Section 4944 for a mission-related investment that does not qualify as a program-related investment (PRI) and that offers a lower return than more standard alternatives, since a foundation’s charitable purposes… Continue Reading

A Smart Pitch for Nonprofit Advocacy

Posted in Grantmaking & Social Investing, Private Foundations, Public Charities, Tax Treatment of Lobbying & Political Activities

Campion Foundation Trustee Sonya Campion recently made an intelligent pitch for private foundation directors, and their institutions, to arm themselves with knowledge about the rules governing advocacy by foundations and their grantees, and to use the powerful tools that the tax code provides for funding change.  We couldn’t agree more! Want to get started?  These free… Continue Reading

Fiscal Sponsorship Survey Seeks Responses by May 8th

Posted in Grantmaking & Social Investing, Nonprofit Network Affiliations, Nonprofit Structures, Relationships & Transactions, Public Charities

The National Network of Fiscal Sponsors (NNFS) has released a new field survey designed to gather current, relevant information on organizations engaged in fiscal sponsorship.  Click HERE to complete the survey no later than May 8, 2015. We encourage all fiscal sponsors to participate in the survey to ensure that the resulting report represents a… Continue Reading

Mexico’s Anti-Money Laundering Law Affects U.S. Donors

Posted in Grantmaking & Social Investing, International Charitable Transactions & Operations, Private Foundations, Public Charities

A number of our clients have asked about Mexico’s Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita (Mexico’s Anti-Money Laundering statute or the “AMLL”), which became effective July 17, 2013.  The AMLL identifies specific transactions that require a Mexican entity that engages in these activities to identify and verify the identity… Continue Reading

CalNonprofits Releases Report on Impact of California’s Nonprofit Sector

Posted in Grantmaking & Social Investing, Private Foundations, Public Charities, Religious Institutions, Revenue Generating Activities

On August 5, 2014, CalNonprofits, a statewide alliance of nearly 10,000 nonprofit organizations promoting the interests of California’s nonprofit sector, released a report, Causes Count: The Economic Power of California’s Nonprofit Sector, “the first report of its kind to examine the nonprofit sector’s scope, activities and economic impact” in California. If you don’t have time to… Continue Reading

Philanthropic Facilitation Act Encourages Program-Related Investments

Posted in Grantmaking & Social Investing, Private Foundations, Social Enterprise

The Philanthropic Facilitation Act recently was introduced in the House of Representatives by co-sponsors Cory Gardner (R-CO) and Jared Polis (D-CO).  The Act would amend the Internal Revenue Code to create a voluntary review process by which the Internal Revenue Service would determine whether specific investments qualify as a private foundation program-related investment (PRI). Expedited approval… Continue Reading

California May Introduce Social Impact Bonds

Posted in Grantmaking & Social Investing, Private Foundations, Social Enterprise

Social impact bonds (“SIBs”), sometimes referred to as “pay-for-success” financing, may arrive in California.  A bill introduced in the legislature, SB9, would establish the Office of Social Innovation and Entrepreneurship Development.  The purpose of this governor’s office would be “to establish partnerships with government agencies, private investors, nonprofit organizations, and for-profit service providers to facilitate the… Continue Reading

Foreign Public Charity Equivalence Repository Launched by Council on Foundations and TechSoup

Posted in Grantmaking & Social Investing, Private Foundations, Public Charities

In the wake of new private foundation regulations, I had previously written about the concept of foreign public charity equivalence repositories.  Our client TechSoup announced yesterday that their repository, built in collaboration with Council on Foundations, is now up and running. It is always exciting to see a client’s hard work come to fruition.

Secretary Clinton Says Proposed Regulations “Clear the Way” for Equivalency Repositories

Posted in Grantmaking & Social Investing, International Charitable Transactions & Operations, Private Foundations, Public Charities

Private foundations making grants directly to foreign organizations generally must use one of two grantmaking procedures―expenditure responsibility or foreign public charity equivalency (“FPCE” for short).  In FPCE, a grantor makes a good faith determination, based on an affidavit of the grantee or on an opinion of counsel, that the foreign charity meets the basic 501(c)(3) public… Continue Reading

IRS Releases Proposed Regulations for Private Foundations

Posted in Grantmaking & Social Investing, International Charitable Transactions & Operations, Private Foundations

The Department of the Treasury and the IRS have just released proposed regulations for private foundations.  Here’s a look at what they say. Expanding class of tax practitioners on whose opinions private foundations can rely for foreign public charity equivalency.  Currently, private foundations wishing to make grants to non-U.S. charities generally have to exercise expenditure responsibility… Continue Reading

Social Enterprise―Innovating through Impactful Partnerships

Posted in Grantmaking & Social Investing, Social Enterprise

OK.  I don’t know what the title of my post means either, but that is actually my point! Social enterprise is an emerging and developing business approach, whether accomplished through a tax-exempt organization, a traditional for-profit entity, or one of the newer hybrid forms―L3Cs, Benefit Corporations, or Flexible Purpose Corporations.  With new approaches necessarily comes new… Continue Reading

New Developments affecting Private Foundation Confirmation of Grantee Charity Status

Posted in Grantmaking & Social Investing, Private Foundations, Public Charities

As has been publicized recently, the IRS has a new web search tool, “Exempt Organizations Select Check.”  This tool allows users to search for organizations that are eligible to receive tax-deductible contributions (the Publication 78 data), as well as organizations that have been automatically revoked for non-filing (the “auto-revoke list”).    This data is, among other… Continue Reading

New Guidance from the IRS on Program-Related Investments

Posted in Grantmaking & Social Investing, Private Foundations, Social Enterprise

Yesterday, the Internal Revenue Service released proposed regulations providing new guidance to private foundations regarding program-related investments.  The regulations offer nine new examples illustrating a wide range of investments that can qualify as PRIs.  These nine new examples illustrate certain general principles, such as the following:   Charitable purposes that may be accomplished through a PRI are broad… Continue Reading