Some for-profit corporations simply make all their charitable contributions directly from the corporation.  Others funnel contributions and grants through a company foundation.  Some have both.  The law does not distinguish company foundations from other private foundations.  All private foundation rules apply to company foundations.

Each topic described below is presented with a written, hard copy handout and a Power Point summary.  Each is designed to provide ample time for interactive questions and answers.  You may select any combination of presentations that will fit your program.

Legal Basics

Law & Foundations 101

This presentation takes a minimum of 2.5 hours and provides a basic introduction to the main legal concepts all board and staff members should know.  Key topics include: an explanation of Section 501(c)(3), fundamental differences between public charities and private foundations; differing charitable deduction limitations for donors giving to private foundations v. public charities; and excise tax penalties applicable to private foundations compared to Intermediate Sanction rules for public charities.

Top Ways Company Foundations Get Into Trouble

This popular 90-minute presentation covers six important subject areas:  1) Reimbursing the Corporation for Salaries and Other Expenses; 2) Tickets to Fundraisers; 3) Travel Expenses; 4) Conflicts of Interest; 5) Grants to Non-charities; and 6) Use of Fiscal Agents.  [See more detailed description of each subject area below]

Company Foundations & the Self-Dealing Rules

With limited exceptions, all financial transactions with the parent company, certain insiders (plus family members) that involve the use of company foundation assets are prohibited and subject to penalty.  This presentation begins with a general explanation of the self-dealing rules and then highlights three specific areas of concern: 

•  Reimbursing the Corporation for Salaries and Other Expenses:  Who pays expenses and how can they be split?
•  Tickets to Fundraisers: Who uses the ticket?
•  Travel Expenses:  Can you reimburse corporate employees?

Conflicts of Interest

This presentation covers the broad range of different types of conflict of interest.  Some conflicts violate the law (federal or state). Others are more ethical conflicts or touch on best practices.  Topics included are self-dealing, intermediate sanctions, grants to organizations where board, staff or corporate executives are associated, and best ways to avoid or treat conflicts of interest.

Grantmaking Issues

Due Diligence: Legal Requirements & Best Practices

Company foundations have a responsibility to see that their grants are used for charitable purposes.  What procedures and recordkeeping are required for grants to IRS-recognized public charities?  This presentation explores the legal requirements for grant review and provides examples of common best practices.

Expenditure Responsibility: Grants to Non-Charities

The law permits company foundations to make grants to organizations not recognized as charities (both domestic and non-U.S.) so long as specific procedures are followed and records are kept.  Based on Edie’s book, Expenditure Responsibility Step by Step, this presentation provides a clear explanation of the five basic requirements necessary to “exercise expenditure responsibility.”

Tipping & The Public Support Test

Most charities that receive grants from company foundations must annually satisfy a public support test that demonstrates that a significant portion of their support comes from a broad cross-section of the general public.  A large grant from one private foundation to a relatively small charity can “tip” the grantee out of public charity status into private foundation status.  This presentation summarizes the basics of the public support test, demonstrates how “tipping” can occur, and explains how company foundations can avoid any IRS penalties in such cases.

Fiscal Agents: A Trap for the Unwary

Company foundations are often tempted to use “fiscal agents” or financial intermediaries to avoid a variety of different legal requirements.  If not structured with care, these arrangements can backfire and cause multiple legal problems.  This presentation describes how to use fiscal sponsorships correctly and stay out of trouble.

Matching Gift Programs

Many corporations offer to match contributions made by employees to charity.  Matching gift programs can be operated by the corporation or by its company foundation.  This presentation describes common practices and pitfalls and the pros and cons of running such a program through the company foundation.

International Grants

As the world becomes more globally interconnected, an increasing number of corporations have interests in charitable giving that addresses concerns outside the United States.  American corporations cannot take a charitable deduction for gifts made to charities organized outside the U.S. – but contributions to a company foundation are deductible and company foundations can make such grants.  Based on Edie’s book, Beyond Our Borders: Making Grants Outside the U.S., this presentation summarizes the basic legal requirements for company foundations and provides detail on the most common procedures: equivalency determination and expenditure responsibility.

Scholarships & Other Grants to Individuals

The law requires more due diligence and recordkeeping for grants to individuals.  The rules are even more restrictive for company foundation scholarships that are limited to corporate employees and their family members.  This presentation covers the legal requirements necessary for scholarships, fellowships, disaster relief, economic relief, prizes and awards – with particular attention to company scholarship programs.