The CPA KPA 2025 Tax Planning Guide for Private Foundations

The CPA KPA 2025 Tax Planning Guide for Private Foundations

Because Form 990-PF is complex, it’s easy for private foundations to make mistakes—and even minor errors can lead to compliance challenges or affect public perception. A careful, well-documented review process helps ensure accuracy and reinforces the foundation’s commitment to sound stewardship.

What Are the Most Common 990-PF Filing Mistakes—and How Can You Avoid Them?

Private foundations can easily make mistakes on Form 990-PF, and those errors can lead to problems with compliance and public perception. Careful preparation and review help private foundations avoid trouble and demonstrate sound stewardship.

What Happens If a Private Foundation Misses Its 5% Distribution? (and how to fix it)

Private foundations must meet annual distribution requirements, and failure to do so can result in significant penalties. When shortfalls occur, they can typically be remedied by making additional grants and properly counting other qualifying expenses.

What Bookkeeping Mistakes Should Private Foundations Be Most Concerned About? (and How to Prevent Them)

Private foundations rely on accurate bookkeeping not only to meet regulatory obligations but to uphold trust and transparency in their operations. By avoiding common financial missteps, they strengthen both their compliance posture and their ability to achieve lasting impact.

Why Choose a Private Foundation Over a Donor-Advised Fund?

Private foundations offer donors greater control, flexibility, and strategic options in managing charitable giving, including the ability to make direct grants, operate programs, accept complex assets, and engage in international or mission-aligned investments. They also serve as enduring platforms for legacy-building, multigenerational engagement, and values-based philanthropy in ways donor-advised funds cannot match.

Can a Private Family Foundation Lower Your Tax Bill?

A private foundation allows individuals and families to structure their charitable giving in a way that offers both long-term flexibility and potential tax savings. With proper planning and compliance, it can serve as a powerful tool for philanthropy, legacy building, and multigenerational involvement.