Private foundations play a crucial role in philanthropy by supporting various charitable causes through grant-making and investments. At GHJ, we understand the unique challenges and opportunities that come with managing private foundations. Our team of experts is dedicated to providing comprehensive services to help private foundations achieve their philanthropic goals while ensuring compliance with all regulatory requirements. From strategic planning to tax compliance, we offer a full spectrum of services tailored to meet the needs of private foundations.

AUDIT, ASSURANCE AND ADVISORY:

• Independent financial statements audit for regulatory compliance
• Internal control and best practice recommendations
• Assistance with implementing new accounting standards
• Board and staff education on accounting and operational topics

MINIMUM DISTRIBUTION REQUIREMENTS (MDR) PLANNING:

• Conduct a private foundation analysis with up to 20 years of foresight to:
  • Gain insight on necessary steps to meet payout requirements and comply with regulations.
  • Run MDR estimates based on varying criteria, such as investment return rates or large contributions.
  • Estimate and use excess distribution carryover amid volatile markets.
• Provide comprehensive reviews of the MDR environment to manage requirements as the investment and donor mix evolves.

ADDITIONAL TAX COMPLIANCE, PLANNING AND CONSULTING SERVICES:

• Complex Tax Compliance Matters:
  • Excess business holdings
  • Taxable expenditures
  • Unrelated business income tax analysis and reporting
  • Foreign reporting
  • Self-dealing reporting and remediation
• Grantmaking and Charitable Spending:
  • Advance approval of grants to individuals (such as scholarships and awards)
  • Program-related investments
  • Private operating foundations
  • Expenditure responsibility
• Complex Investment Portfolios:
  • Alternative investments
  • Mission-related investments
  • Excise, income and state and foreign tax reporting exposure

Private family foundations are a powerful way for families to leave a lasting legacy and make a significant impact on their chosen causes. At GHJ, we provide specialized services to help private family foundations navigate the complexities of charitable giving and compliance. Our team works closely with families to develop tailored strategies that align with their philanthropic vision and ensure effective and efficient management of their foundation's assets.

AUDIT, ASSURANCE AND ADVISORY:

• Independent financial statements audit for regulatory compliance
• Internal control and best practice recommendations
• Assistance with implementing new accounting standards
• Board and staff education on accounting and operational topics

COMPREHENSIVE CHARITABLE PLANNING:

• Assist families in reaching their philanthropic goals as part of a liquidity event or long-term strategy.
• Plan asset contributions to private family foundations or donor-advised funds.
• Prepare exemption applications for private family foundations or other charitable organizations.

MINIMUM DISTRIBUTION REQUIREMENTS (MDR) PLANNING:

• Conduct analyses with up to 20 years of foresight to help families:
  • Understand necessary steps to meet payout requirements and comply with regulations.
  • Run MDR estimates based on varying criteria, such as investment return rates or large contributions.
  • Estimate and use excess distribution carryover amid volatile markets.
• Provide comprehensive reviews to manage MDR requirements as family investments and donor mix evolve.

ADDITIONAL TAX COMPLIANCE, PLANNING AND CONSULTING SERVICES:

• Complex Tax Compliance Matters:
  • Excess business holdings
  • Taxable expenditures
  • Unrelated business income tax analysis and reporting
  • Foreign reporting
  • Self-dealing reporting and remediation
• Grantmaking and Charitable Spending:
  • Advance approval of grants to individuals (such as scholarships and awards)
  • Program-related investments
  • Private operating foundations
  • Family expenditure responsibility
• Complex Investment Portfolios:
  • Alternative investments
  • Mission-related investments
  • Excise, income and state and foreign tax reporting exposure

Corporate foundations are essential for companies looking to give back to their communities and support philanthropic initiatives. At GHJ, we understand the strategic importance of corporate foundations and offer a range of services to help them achieve their charitable goals. Our team provides expert guidance on compliance, planning, and managing the unique aspects of corporate philanthropy, ensuring that corporate foundations can make a meaningful impact while maintaining regulatory compliance.

AUDIT, ASSURANCE AND ADVISORY:

• Independent financial statements audit for regulatory compliance
• Internal control and best practice recommendations
• Assistance with implementing new accounting standards
• Board and staff education on accounting and operational topics

COMPREHENSIVE CHARITABLE PLANNING:

• Develop strategies for corporations to achieve philanthropic goals as part of a liquidity event or long-term strategy.
• Plan asset contributions to corporate foundations or donor-advised funds.
• Prepare exemption applications for corporate foundations or other charitable organizations.

MINIMUM DISTRIBUTION REQUIREMENTS (MDR) PLANNING:

• Conduct analyses with up to 20 years of foresight to help corporations:
• Understand necessary steps to meet payout requirements and comply with regulations.
• Run MDR estimates based on varying criteria, such as investment return rates or large contributions.
• Estimate and use excess distribution carryover amid volatile markets.
• Provide comprehensive reviews to manage MDR requirements as corporate investments and donor mix evolve.

ADDITIONAL TAX COMPLIANCE, PLANNING AND CONSULTING SERVICES:

• Complex Tax Compliance Matters:
  • Excess business holdings
  • Taxable expenditures
  • Unrelated business income tax analysis and reporting
  • Foreign reporting
  • Self-dealing reporting and remediation
• Grantmaking and Charitable Spending:
  • Advance approval of grants to individuals (such as scholarships and awards)
  • Program-related investments
  • Private operating foundations
  • Corporate expenditure responsibility
• Complex Investment Portfolios:
  • Alternative investments
  • Mission-related investments
  • Investment income
  • Excise, income and state and foreign tax reporting exposure

Public charity foundations, including those associated with hospitals, universities, and other public entities, play a vital role in advancing societal good through their charitable activities. GHJ understands the unique challenges these foundations face, particularly in maintaining public charity status and managing donor contributions. Our team of experts provides comprehensive support to help these foundations navigate the complexities of public support requirements and maximize their impact.

AUDIT, ASSURANCE AND ADVISORY:

• Independent financial statements audit for regulatory compliance
• Internal control and best practice recommendations
• Assistance with implementing new accounting standards
• Board and staff education on accounting and operational topics

PUBLIC CHARITY STATUS MAINTENANCE:

• The public charity status offers a more favorable charitable classification for individual donor deductibility limitation purposes.
• However, relying on a small pool of large donors and investment income can potentially jeopardize public support status, which must be managed by a complex mechanical calculation.

OUR SERVICES:

• Comprehensive Guidance: We help maintain public charity status and relieve foundation staff or volunteers from misinterpreting mechanics.
• Compliance and Reporting: Ensure accurate and timely reporting to comply with public support tests and other regulatory requirements.
• Strategic Planning: Develop strategies to diversify funding sources and strengthen public support to maintain favorable charitable status.
• Donor Management: Provide tools and advice for managing donor contributions to ensure compliance and maximize the foundation's impact.

ADDITIONAL TAX COMPLIANCE, PLANNING AND CONSULTING SERVICES:

• Complex Tax Compliance Matters:
  • Excess business holdings
  • Taxable expenditures
  • Unrelated business income tax analysis and reporting
  • Foreign reporting
• Grantmaking and Charitable Spending:
  • Advance approval of grants to individuals (such as scholarships and awards)
  • Program-related investments
  • Private operating foundations
  • Expenditure responsibility
• Complex Investment Portfolios:
  • Alternative investments
  • Mission-related investments
  • Excise, income and state and foreign tax reporting exposure

By partnering with GHJ, public charity foundations can confidently maintain their public charity status, effectively manage donor contributions and focus on their mission to drive positive societal impact.

GHJ’s Nonprofit Audit and Assurance Practice are designed to provide foundations with the highest level of confidence and transparency in their financial and operational activities. Understanding the unique challenges faced by nonprofit organizations, GHJ offers a range of specialized audit and assurance services to meet their needs. The experienced team ensures compliance, identifies risks and enhances operational efficiencies, while allowing foundations to focus on their mission with the assurance that their financial health is well-managed. GHJ's deep expertise and commitment to excellence provide the necessary insights and tools to maintain financial integrity, manage risks effectively and achieve organizational goals with confidence.

EMPLOYEE BENEFIT PLAN AND PENSION AUDITS:

• Comprehensive audits of employee benefit plans and pensions to ensure compliance with ERISA, DOL and IRS regulations.
• Evaluation of plan operations and financial statements to provide stakeholders with reliable information.

ENTERPRISE RISK MANAGEMENT:

• Identification and assessment of potential risks that could impact your foundation's operations and financial health.
• Development and implementation of risk management strategies to mitigate identified risks and enhance organizational resilience.

FINANCIAL STATEMENT AUDITS, REVIEWS, AND COMPILATIONS:

• Detailed audits, reviews and compilations of financial statements to ensure accuracy and compliance with GAAP.
• Providing stakeholders with a clear and accurate picture of your foundation’s financial position.

GRANTEE AUDIT:

• In-depth audits of grantees to ensure proper use of funds and compliance with grant terms.
• Verification of financial reports and evaluation of internal controls to safeguard grant funds.

INTERNAL AUDIT:

• Conduct thorough internal audits to assess operational and financial controls.
• Independent assessment of your foundation's internal controls, governance processes and operational effectiveness.
• Provide recommendations for improving internal processes.
• Recommendations for improving internal controls and enhancing overall efficiency and compliance.

INTERNAL CONTROL STRENGTHENING AND ASSESSMENT:

• Assess and enhance internal control systems.
• Ensure robust and reliable financial and operational controls.

Learn more about GHJ’s Nonprofit Audit Practice.

Navigating the complex landscape of tax regulations and compliance can be challenging for foundations. GHJ's specialized Nonprofit Tax Services are designed to help foundations meet their tax obligations efficiently while maximizing financial health. The experienced team provides comprehensive tax compliance, planning and strategic advice to ensure that foundations operate within legal frameworks while optimizing tax outcomes. GHJ's deep understanding of the nonprofit tax landscape and commitment to exceptional service support foundations in remaining compliant with all tax regulations and leveraging strategic tax planning to advance their philanthropic missions.

TAX COMPLIANCE:

• IRS Forms 990, 990-T, 900-PF: Preparation and filing of federal tax returns to ensure compliance with IRS requirements for private foundations and other tax-exempt organizations.
• State of California Forms 199 and 109: Comprehensive state tax compliance services, including preparation and filing of California-specific tax forms.
• State of California Attorney General Form RRF-1 and Various Other Returns: Ensuring compliance with state-level reporting requirements and maintaining good standing with regulatory bodies.

TAX PLANNING AND STRATEGY:

• Comprehensive Planning Services: Development of tailored tax strategies to effectively manage your foundation’s tax liabilities and take advantage of available tax benefits.
• Effective Tax Management: Proactive planning to align tax strategies with your foundation's financial goals and philanthropic objectives.

TAX RESEARCH AND IMPACT ANALYSIS:

• Detailed Research on Tax Implications: In-depth analysis of current and emerging tax laws and regulations to assess their impact on your foundation.
• Strategic Advice: Providing actionable insights and recommendations to navigate complex tax issues and optimize your foundation’s tax position.

Learn more about GHJ’s Nonprofit Tax Practice.

GHJ’s Advisory Services are designed to provide comprehensive support to foundations, helping them navigate complex challenges and achieve their strategic objectives. The expert advisory team offers tailored solutions to enhance operational efficiency, improve governance, and drive organizational success. With a deep understanding of the unique needs of nonprofit organizations, GHJ delivers actionable insights and practical strategies to support foundations in their mission.

BENCHMARKING AND BEST PRACTICE MODELS:

• Analyze performance against industry standards.
• Implement best practices to optimize operations and outcomes.

BOARD GOVERNANCE ASSESSMENT:

• Evaluate board effectiveness and governance structures.
• Provide recommendations to enhance board performance and compliance.

BUDGETS AND CASH-FLOW PROJECTIONS:

• Develop accurate budgets and cash-flow projections.
• Support financial planning and resource allocation.

CONSULTING ON MERGER, ACQUISITION AND DISSOLUTION:

• Offer strategic advice on mergers, acquisitions and dissolutions.
• Ensure smooth transitions and compliance with regulatory requirements.

DATA ANALYTICS ON GRANT-MAKING:

• Utilize data analytics to enhance grant-making decisions.
• Measure the impact and effectiveness of grant programs.

INFORMATION SECURITY AND CYBERSECURITY ASSESSMENT:

• Evaluate the foundation’s information security and cybersecurity posture.
• Implement measures to protect sensitive data and prevent cyber threats.

OUTSOURCED ACCOUNTING:

• Provide comprehensive outsourced accounting services.
• Ensure accurate financial reporting and compliance with accounting standards.

SEARCH AND STAFFING:

• Assist with recruitment and staffing needs.
• Provide strategic advice on building a strong and effective team.

SPECIAL PROJECTS:

• Offer tailored consulting services for unique and complex projects.
• Provide expert guidance and support to achieve project goals.

TRAINING AND EDUCATIONAL SEMINARS AND CONVENING:

• Assist with implementation of new accounting standards
• Conduct customized training and educational seminars for foundation staff and board members.
• Facilitate convening sessions to share knowledge and best practices.

Learn more about GHJ’s Advisory Services.