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
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.
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
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
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
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
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