NOVEMBER 2023 DWTM COUNTDOWN

Five Things You Should Know About the difference between a private foundation and a public charity?

  1. Every section 501(c)(3) organization is classified as either a private foundation or a public charity. Private foundations and public charities are distinguished primarily by the level of public involvement in their activities.
  2. Public charities generally receive a greater portion of their financial support from the general public or governmental units, and have greater interaction with the public.
  3. A private foundation, on the other hand, is typically controlled by members of a family or by a small group of individuals, and derives much of its support from a small number of sources and from investment income.
  4. Because they are less open to public scrutiny, private foundations are subject to various operating restrictions and to excise taxes for failure to comply with those restrictions.
  5. Under the tax law, a section 501(c)(3) organization is presumed to be a private foundation unless it requests, and qualifies for, a ruling or determination as a public charity.

 

Four Things You Should Know About a Quid Pro Quo Contribution

  1. A quid pro quo contribution is a payment a donor makes to a charity partly as a contribution and partly for goods or services.
  2. If a donor gives a charity $100 and receives a concert ticket valued at $40, the donor has made a quid pro quo contribution. In this example, the charitable contribution part of the payment is $60.
  3. Even though the deductible part of the payment in the above example is not more than $75, a disclosure statement must be provided by the organization to the donor because the donor's payment (quid pro quo contribution) is more than $75.
  4. Failure to make the required disclosure may result in a penaltyto the organization.

 

Three Provisions You Should Include in Your Board Member Agreement

  1. A clear statement regarding what is expected regarding attendance at board meetings.
  2. A clear statement regarding what is expected regarding minimum financial contributions.
  3. A clear statement regarding your expectations regarding confidentiality.

 

Two Things You Should Do at the Conclusion of Every Board Meeting

  1. Thank the board members for their attendance.
  2. Remind your board members of the important role they play in fulfilling your charitable purpose.

  

One Thing I Know For Sure…

The more you practice the art of thankfulness, the more you have to be thankful for.” — Norman Vincent Peale