Ah, April – the season for accounting and paperwork. In the spirit of looking back, organizing, and checklists we put together a list of things all family foundations should be considering on an annual basis. Although it’s hard to make time for reflection, making time to consider the following areas once a year is key to running a successful foundation.
Review of bylaws and articles of incorporation:
- Were we in compliance with all of our bylaws last year? Do we have all our officers in place? Did each officer do what was outlined in the bylaws?
- Do we need to amend anything in our bylaws? (Make sure you send a copy to the IRS).
- Are our bylaws consistent with our articles of incorporation?
Review of our mission statement:
- Are we fulfilling our mission? In what ways?
- Does our grant making reflect that mission?
- Does all our written communication (website, grant letters, social media) reflect our mission?
Review of Family Roles:
- Are all interested and eligible family members engaged and providing their greatest value?
- What is the leadership succession plan?
- Is there a better opportunity or plan to integrate the next generations?
- Are our family values aligned with the mission of the foundation and the execution of our grantmaking?
Review of partners/grantees:
- Who are our partners? Individual contributors, grantees, other partners.
- In what ways are we serving our partners? In what ways could we do it better?
- Are there opportunities to collaborate with other foundations on specific initiatives or programs?
- Are we members of appropriate and helpful peer associations? (For example, Southern California Grantmakers, Council on Foundations, and The National Center for Family Philanthropy).
- Check in on grantees status. Are they all up-to-date?
Review of investments:
- Are our investments performing adequately?
- Are there opportunities to do program related investment?
- Is our evaluation process realistic for our culture or should it be updated?
Review of regulations:
- Have any state or federal laws changed?
- Is our insurance up to date?
- Are our permits and licenses up to date?
- Have we made our 990 available publicly in accordance with laws?
Review of Financial Position:
- Is our capital invested with the right firm and in the most appropriate vehicles in accordance with our bylaws and investment objectives?
- Have we met regularly with our trusted advisors including financial advisors, accountants and lawyers for an annual or more frequent check-in?
- What is our long term strategy? What are the pros and cons of spending down or working in perpetuity?
For more see this compliance checklist for Family Foundations from the Council on Foundations and this resource list for family foundations from the Foundation Center.
