2022 Tax Planning Guide for Private Foundations

2022 Tax Planning Guide for Private Foundations

The CPA KPA 2022 Tax Planning Guide for Private Foundations provides information and planning tips to help navigate complex tax and compliance issues. We help demystify Form 990-PF and the complicated rules that govern private foundations.

Do people donate to charity for the tax deduction?

The primary reason people give to charity is not to take advantage of tax deductions. Very simple arithmetic shows this cannot be true.

The Truth About Overhead Ratios

The overhead ratio is a useful tool for private foundations carrying out due diligence in their grant making process. Evaluating the effectiveness of nonprofits is very difficult and analyzing overhead is just one piece of the puzzle. Every nonprofit charity needs a balanced amount of overhead to operate its charitable programs and to invest in crucial systems, talent, and training.

Effectiveness for Private Foundations—the Obscured North Star

It is said that effectiveness should be the North Star for private foundations—unfortunately this guiding light is difficult to follow. Foundation leaders must blend together art and science to course correct and help inform where future resources should be deployed.

Should private foundations spend down their endowment?

Family foundations are typically designed to last forever. A new philosophy advocates spending down foundation assets in a limited period of time in the here and now.

Should your foundation prioritize giving with no strings attached?

Private foundations can provide support to nonprofits in the form of restricted grants or unrestricted grants. Providing unrestricted grants is good policy whenever possible.