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Whistleblower Policies for Iowa Nonprofits: Legal Requirements, IRS Guidance, and Best Practices

January 26, 2026

Before we get into what makes a good Whistleblower Policy, here are four real-life examples of why nonprofits need them:

  1. A long serving bookkeeper notices unexplained reimbursements approved by the executive director but fears reporting them because the director controls her job.
  2. A volunteer becomes aware that restricted donor funds are being used for unrelated expenses but does not know who to tell or whether speaking up could jeopardize their role.
  3. A staff member witnesses repeated harassment by a senior manager and worries that reporting the behavior will quietly end their career at the organization.
  4. A board member learns that required filings have not been made for several years and is concerned about personal liability if the issue is ignored.

In each of these situations, wrongdoing continues not because people are unaware of it, but because they do not feel safe reporting it. A clear Whistleblower and Retaliation Protection Policy is designed to solve exactly this problem.

As a member of a nonprofit organization, wouldn’t you want to know if someone inside the organization was acting illegally, unethically, or contrary to its mission? Nonprofits exist to serve the public good and depend heavily on trust, transparency, and ethical conduct. Yet studies consistently show that reporting drops sharply when organizations lack a clear and credible whistleblower policy.

A well drafted Whistleblower Policy creates a structured, trusted process for raising concerns. It protects individuals who come forward, helps leadership address problems early, and reduces
legal and reputational risk. This blog post explains what a whistleblower policy is, why it matters, who it protects, how it works in practice, and the best practices every nonprofit should consider adopting.

What It Means to “Blow the Whistle”

To “blow the whistle” means to report suspected wrongdoing within an organization. A whistleblower policy establishes formal guidelines for employees, board members, volunteers, and others to follow when they become aware of potential misconduct.

The goal is not punishment. The goal is early detection, accountability, and correction before harm spreads. Effective policies encourage reporting by assuring individuals that they can raise
concerns without fear of retaliation, job loss, or reputational damage. Federal and state laws across the United States reinforce this principle by protecting whistleblowers from retaliation and encouraging internal reporting before problems escalate.

Legal Framework and IRS Expectations

Federal law explicitly protects whistleblowers. Section 1107 of the Sarbanes-Oxley Act, codified at 18 U.S.C. § 1513(e), makes it a federal crime to knowingly retaliate against a person for providing truthful information to law enforcement about a possible federal offense. Penalties can include fines and imprisonment of up to ten years, and the law also prohibits destruction of evidence.

Practically speaking, this means nonprofit leaders must take whistleblower complaints seriously, preserve documents, and avoid any actions that could be perceived as retaliation, even indirectly. Iowa law reinforces these principles. The Iowa Nonprofit Corporation Act, Iowa Code chapter 504, imposes fiduciary duties of care, loyalty, and obedience on directors and officers. When credible concerns about misuse of funds, conflicts of interest, or legal noncompliance are raised and ignored, directors and officers risk breaching those duties. A whistleblower policy provides a documented process for receiving and addressing concerns, which can be critical in demonstrating that leadership acted prudently and in good faith.

Iowa nonprofits should also be mindful that retaliation claims may arise under Iowa common law, Iowa civil rights statutes, and federal employment laws applied in Iowa courts. Even volunteers and independent contractors may assert claims when adverse actions follow protected reporting.

The Internal Revenue Service reinforces these expectations through Form 990. Although a whistleblower policy is not technically mandatory, the IRS asks whether one exists and treats it as a hallmark of good governance. To meet the Form 990 standard, the policy must clearly state that the organization protects individuals who report suspected violations of law or organizational policy in good faith.

Why Whistleblower Policies Are Essential for Nonprofits

Nonprofits rely on public trust, donor confidence, and community credibility. This is especially true in Iowa, where many nonprofits operate in close-knit communities and rely on long-term relationships with donors, volunteers, and local stakeholders. Many Iowa nonprofits advocate publicly for accountability, fairness, and ethical conduct. That mission is undermined if similar misconduct is tolerated internally or handled informally behind closed doors.

A strong whistleblower policy helps Iowa nonprofits:

  • Identify problems early, when they are easier and less costly to fix
  • Reduce the risk of regulatory scrutiny by the IRS, Iowa Attorney General, or Iowa Secretary of State
  • Demonstrate that directors and officers are fulfilling their fiduciary duties under Iowa law
  • Protect staff, volunteers, and board members from retaliation
  • Preserve public trust in smaller communities where reputational harm can spread quickly

Without a clear policy, individuals may stay silent, misconduct may continue unchecked, and organizations may face far greater legal, financial, and reputational consequences later.

Who the Whistleblower Policy Is For

A whistleblower and retaliation protection policy should apply broadly. It should cover:

  • Employees
  • Officers and directors
  • Volunteers
  • Independent contractors
  • Vendors
  • Clients and other stakeholders

Even organizations with no paid staff need whistleblower protection. Volunteers often have direct access to sensitive information and must feel safe raising concerns.

When and Where to Report Misconduct

Concerns should be reported as soon as reasonably possible. Prompt reporting allows the organization to stop ongoing harm, preserve evidence, and respond appropriately. Best practice policies provide multiple reporting channels, such as:

  • A direct supervisor
  • Another manager or officer
  • A designated ethics or compliance contact
  • The board chair or audit committee
  • An external or anonymous reporting mechanism

Multiple options are essential, especially when the concern involves a supervisor or senior leadership.

Covered Wrongdoing

A well drafted policy clearly defines the types of conduct that may be reported, including:

  • Fraud or financial misconduct
  • Theft or misuse of organizational assets
  • Violations of law or regulations
  • Conflicts of interest
  • Discrimination or harassment
  • Violations of confidentiality obligations
  • Unsafe or unhealthy working conditions
  • Abuse of authority
  • Retaliation against whistleblowers

Clear definitions reduce uncertainty and encourage reporting.

Reporting Procedures

Effective policies explain how to report concerns and make the process accessible. Best practices include:

  • Clear written reporting instructions
  • Options for confidential or anonymous reporting
  • Identification of who receives and reviews reports
  • Escalation paths if concerns are not addressed

Good documentation protects both the whistleblower and the organization.

Investigation Procedures

Once a report is received, the organization must act promptly and responsibly. The policy should describe:

  • How investigations are initiated
  • Who conducts them
  • How evidence is collected and preserved
  • Expected timelines
  • How findings are documented and addressed

Investigations should be objective, thorough, and conducted by individuals with appropriate independence and authority.

Confidentiality

Confidentiality is critical to effective whistleblower protection. Policies should commit to maintaining confidentiality to the greatest extent reasonably possible. While absolute confidentiality cannot always be guaranteed, especially if legal proceedings follow, failing to promise confidentiality at all will strongly discourage reporting.

Protection Against Retaliation

The policy must clearly prohibit retaliation. Retaliation includes termination, demotion, harassment, intimidation, reduced hours, or any adverse action taken because someone reported
concerns in good faith. Anyone who retaliates should face discipline, up to and including termination or removal from office or board service.

Good Faith Reporting and False Allegations

Whistleblowers must act in good faith and have reasonable grounds to believe misconduct has occurred. Knowingly false or malicious allegations should result in discipline. Importantly, an allegation that cannot be substantiated does not mean it was made in bad faith.

Disciplinary Action and Outcomes

Policies should outline potential consequences when allegations are substantiated, including corrective action, discipline, or termination. They should also address consequences for retaliation and bad faith reporting.

Training and Communication

This is critical. A whistleblower policy is ineffective if people do not know it exists or how to use it.

For Iowa nonprofits, this section should align closely with other governance disclosures and practices reflected on IRS Form 990, including policies addressing conflicts of interest, document retention and destruction, compensation review, and Form 990 review and approval itself. The IRS looks at governance holistically, not in isolation. Best practices include:

  • Distributing the policy during onboarding
  • Providing periodic training
  • Including the policy in employee handbooks
  • Training investigators on process and confidentiality

Consistent implementation across these policies strengthens credibility if the organization’s governance practices are ever reviewed by the IRS or state regulators.

Support for Whistleblowers

This is equally important. Whistleblowers often experience stress, fear, or emotional strain. Providing access to support resources demonstrates a genuine commitment to ethical culture and
reinforces trust.

Policy Review and Updates

Whistleblower policies should be reviewed periodically and updated to reflect changes in law, organizational structure, and best practices.

Conclusion

A well designed whistleblower and retaliation protection policy is a cornerstone of strong nonprofit governance. It protects individuals, strengthens organizational integrity, and reinforces public trust.

For Iowa nonprofits, whistleblower protection should be viewed alongside other core governance practices reported on IRS Form 990, including conflict of interest policies, document retention policies, compensation approval processes, and board oversight procedures. These policies work together to demonstrate that directors and officers are meeting their fiduciary obligations under Iowa law.

Nonprofits should not treat whistleblower policies as boilerplate or check-the-box documents. They should be tailored to the organization’s structure, actively implemented, and supported by leadership.

I advise Iowa nonprofits on governance, compliance, and risk management. I work with Iowa charities, churches, foundations, associations, and membership organizations to draft, review, and align whistleblower policies with Articles of Incorporation, Bylaws, Form 990 disclosures, and the full suite of IRS-recommended governance policies.

If your Iowa nonprofit needs assistance drafting, reviewing, or updating a whistleblower policy or strengthening its overall Form 990 governance framework, contact me anytime. I offer free consultations. My email is: gordon@gordonfischerlawfirm.com

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Why Your Nonprofit Needs a Strong Investment Policy

January 22, 2026

If your nonprofit holds financial assets—whether as operating reserves, short-term funds, or long-term endowments—having a written Investment Policy is essential for responsible stewardship and sound governance.

What is an Investment Policy?

An Investment Policy is a formal set of guidelines that explains who makes investment decisions, how those decisions are made, and what goals and limits guide investment activity. It provides clarity on acceptable asset types, risk tolerance, reporting expectations, and the procedures your organization uses to manage and monitor investments.

A well-crafted policy should:

  • Align investment activity with your mission and financial needs

  • Define roles and responsibilities for investment decision-making

  • Describe how investments will be selected, monitored, and evaluated

  • Explain risk management, diversification, and liquidity considerations

  • Establish reporting and oversight procedures for leadership and the board

Why It Matters

Here’s why an Investment Policy deserves attention:

1. Protects Your Organization from Poor Decisions
Investing without formal guidelines makes it easy to drift into unsupportable risk or inconsistent practices. A written policy helps safeguard assets and supports thoughtful decision-making.

2. Supports IRS Form 990 Reporting
While the IRS doesn’t require an Investment Policy, Form 990 asks detailed questions about investments and oversight. Having a documented policy makes reporting easier and more accurate, reducing stress at filing time.

3. Preserves Endowment and Long-Term Funds
For organizations with endowed funds or long-term financial commitments, a policy helps protect resources meant to last for generations by defining investment goals and risk thresholds.

In other words, funds in which the assets are intended to last in perpetuity and are required to support the organization’s programs and services over the long term.

Who Should Be Involved

A clear Investment Policy assigns responsibility so everyone knows who does what:

  • Board of Directors: Provides oversight, reviews performance, and updates the policy at least quarterly.

  • Finance or Investment Committee: May be formed to support decision-making and supervision.

  • Executive Director/Staff: Can monitor investments and coordinate with outside advisors.

  • Financial Advisor/Manager: Many nonprofits hire professionals to implement strategies consistent with the policy.

board training at wood table

Making Smart Investment Decisions

When your organization evaluates investment options, consider:

  • What are your short-, medium-, and long-term financial needs?

  • What level of risk is acceptable?

  • How liquid do assets need to be?

  • How will you measure performance and report results?

Answering these questions in advance—and formalizing them in policy—keeps decision-making consistent and aligned with your mission.

Regular Oversight & Review

Investments and financial markets change over time. That’s why your policy should include a process for regular monitoring and review. In that review, analyze performance measurement, risk assessment, and board evaluation.

Final Thoughts

A strong Investment Policy manages risk and gives confidence to your leadership, clarity to your staff, and credibility to donors and regulators. Thoughtful policy development can strengthen your nonprofit’s financial foundation and support its long-term mission.

Every nonprofit handles resources differently and your Investment Policy should reflect that. The right guidance can help you protect your assets while supporting the mission you care about most.

Curious about next steps? Connect with GFLF for a no-cost consultation.

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Gandhi’s Salt March and Why Your Favorite Organization Needs an Investment Policy

March 12, 2025

On this date (March 12) in 1930, Mohandas Gandhi began his 24-day, 240 mile (387 kilometer) “Salt March” to the Indian village of Dandi (then called Navsari) as an act of non-violent civil disobedience to protest the salt tax levied by colonial Britain. Gandhi and his followers walked for 24 days, 10 miles per day. The Salt March helped to galvanize Indian resistance to British rule and introduced the world to Gandhi’s commitment to nonviolence. This all helped to lay the groundwork for India’s independence in 1947.

The Salt March was hard, exhausting, and dangerous.

Your nonprofit needs an Investment Policy. It needs commitment because it too is hard. But surely nothing like the bravery and discipline shown by Gandhi and his followers. So buckle up, read this post, learn about the need for an Investment Policy, and then follow through by contacting me to get started. (My email is gordon@gordonfischerlawfirm.com).

Introduction to an Investment Policy

Does your fave nonprofit have an Investment Policy? Sn Investment Policy is vital for every nonprofit, including yours! It doesn’t take a financial professional to realize that unregulated investing is at best, foolish, and at worst, utterly disastrous.

When we invest in something, we hope that the investment will accrue value over time. In fact, one important way that your organization’s Board of Directors can fulfill its fiduciary responsibility is through investing assets to further the nonprofit’s goals. But investing can be risky. That’s why it’s important that your nonprofit educate and protect itself by establishing an Investment Policy.

What is an Investment Policy?

Investments can be a useful way to grow value and support the mission of a nonprofit organization. But investments don’t always work in an investor’s best interest. In fact, some level of risk is inherent in most investments. An Investment Policy is a set of guidelines or procedures that will help your organization determine and manage how it invests its resources. And, just as importantly, an Investment Policy clarifies why your organization invests its resources the way it does.

An Investment Policy should regulate, at minimum, who is accountable for investment decisions, what kinds of investments are acceptable, and how investments will be tracked.

A comprehensive Investment Policy should accomplish the following:

  • Communicate how your organization’s mission and vision will guide investment choices.
  • Determine who will be responsible for the various pieces of investment management.
  • Communicate clear objectives to all parties involved (Officers, Directors, independent contractors, donors, etc.).
  • Clarify the specific procedures for investment selection.
  • Confirm procedures related to the expenditure of investments; when and why you’re your organization’s investments be utilized or spent?
  • Identify the criteria against which the performance of investments will be measured.
  • Address risk (tolerance, management, and diversification).
  • Identify reporting and disclosure procedures and requirements.
  • Function as a written, objective guide for ongoing oversight of your investments.

Don’t worry, we’ll get into how soon! But first, let’s explore the following question:

Why is an Investment Policy Important?

An Investment Policy protects your organization from poor investment decisions. At that same time, it demonstrates your organization’s adherence to best practices to internal and external parties.

It does this by: 

  • Providing guidelines for managing an organization’s financial resources effectively. 
  • Laying out procedures to evaluate and manage risk. 
  • Ensuring that investment decisions are aligned with the organization’s mission and objectives. 

IRS Form 990

A well-written Investment Policy will come in handy when filing IRS Form 990 (the annual nonprofit filing required by the Internal Revenue Service). Form 990 includes several questions about investments and associated policies. These can be found in Part IV, Part VIII, Part X, and Part XI. Organizations must report details about their investment portfolios including the types of investments, the value of each investment, and any gains or losses. A well-defined Investment Policy should create streamlined and reliable processes for tracking investments. This will provide your organization with more accurate data come filing time and will make the filing process less daunting.

Endowment Funds

An Investment Policy is particularly important for organizations with endowed funds. In other words, funds in which the assets are intended to last in perpetuity and are required to support the organization’s programs and services over the long term. An Investment Policy can protect and preserve these critical resources.

Hopefully we’ve convinced you by this point that an Investment Policy is important. Let’s go deeper.

Who Is Responsible?

Who within your organization should be responsible for making investment decisions? How will decisions be reached? Who will be responsible for investment management and tracking? To answer these questions and avoid confusion, your nonprofit’s Investment Policy should clearly define roles and responsibilities. This will ensure consistency and accountability.

Your Fave Nonprofit’s Board of Directors

Your Board of Directors should be responsible for proper management of investments. It’s typically the Board’s job to provide consistent oversight and ensure that funds are being used prudently and effectively. This will include regular audits. The Board should also regularly review the performance of investment accounts. The Investment Policy itself should be reviewed at least quarterly by the Board and updated as needed.

Many nonprofit Boards choose to hire a professional financial advisor or investment manager to implement investments and offer advice. This person’s role can be accounted for in the Investment Policy.

Your Board may choose to appoint the Executive Director (or a similar employee) to actively monitor your organization’s investments day-to-day, and/or to serve as the primary point of contact for outside professional advisors who are assisting in the management of funds.

An Investment Committee may also be useful in order to further define and manage responsibilities.

We’re about to dive into HOW to make smart investment decisions!

How Should Investment Decisions Be Made?

When your organization makes investment decisions, it may wish to consider the following questions:

  • What is the purpose of our assets?
  • What are the general economic conditions?
  • What are the possible effects of inflation or deflation?
  • What are the tax consequences, if any, of our investment decisions or strategies?
  • What is the role that each investment plays within the overall investment portfolio?
  • What is the expected total return from the income and appreciation of investments?
  • What are the needs of our organization currently and what are our goals?
  • What is an asset’s special relationship or value, if any, to our organization’s purpose(s)?

The specific questions and their answers may vary dramatically based on the size and scope of your organization. But even smaller nonprofits will benefit from creating an investment framework which can grow and develop alongside them.

Goal and Asset Length

How will your Board determine which types of assets to invest in?

It’s especially important for your Board to consider short-, medium-, and long-term goals when investing. Different types of assets require different commitments and hold varying degrees of risk and flexibility.

For example, when your organization decides where and how to invest its money, it will need to consider if it will require quick access to the funds (short-term), if it’s saving up for something in a few years (medium-term), or it it’s investing for the distant future (long-term).

To do this effectively, your Board will need to be well-versed in various types of investments (stocks, bonds, real estate, endowments, etc.). Your Board will need to examine its finances, mission, and goals. It should then utilize that information to determine how best to diversify its funding throughout various types of investments. This is called asset allocation.

As a reminder, if your organization’s Board of Directors does not feel confident in its ability to analyze and distribute investment funds, it can hire a financial expert to consult and assist in this process.

And don’t forget to set goals for how your organization expects and hopes these investments will perform.

By considering these factors and more, your organization can create a streamlined set of processes in its Investment Policy. This will ensure a balanced investment plan that aligns with your organization’s financial objectives.

There’s one more important piece – monitoring and tracking! This will be especially useful when completing your organization’s annual Form 990. Let’s dive in.

How to Track Your Investments (Performance Monitoring, Measurements, and Review)

Are your investments meeting their objectives? It’s important for your nonprofit to regularly review and monitor investment performance. Financial markets and your nonprofit’s circumstances can change over time. This makes it especially important to periodically reassess your organization’s investment strategies. Your organization can then assess progress, adjust as needed, and communicate results to stakeholders.

Regular performance monitoring should involve tracking financial metrics such as return on investment (ROI), portfolio diversification, and risk-adjusted returns. Monitoring processes may also include full audits on a regular schedule. Consider outlining an audit schedule within your Investment Policy. As a reminder, it is your Board’s responsibility to facilitate audits.

Ensure your Investment Policy includes procedures that outline the monitoring, measurement, and review processes that your organization deems necessary to ensure your investments are meeting their objectives. Your Board of Directors is responsible for overseeing these regular reviews.

Conclusion

If your organization is interested in drafting (or revisiting!) its Investment Policy, don’t hesitate to reach out today to the Gordon Fischer Law Firm.

For the month of March, I’m offering a special to Iowa nonprofits. I will draft, revise, and edit, specific to the unique mission of your nonprofit, the ten (10) policies expressly referenced by the IRS on Form 990.

Questions about the ten (10) policies referenced on IRS Form 990?

Again, my email is: gordon@gordonfischerlawfirm.com

Please reach out to me anytime!

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Operating Reserves Policy: Why Your Nonprofit Needs One

operating reserves

Just like it’s a smart idea to have a personal “rainy day” fund just in case of an emergency home repair, surgery, or other unexpected large costs, the same goes for a nonprofit organization. Even nonprofits with solid income streams can be hit with unanticipated events, income, and unbudgeted expenses. In these situations, it’s vital to have that financial cushion in the form of operating reserves so the organization doesn’t suffer long-term, negative consequences from temporary dilemmas. Concurrently, it’s essential to have the board adopt and adhere to a policy outlining the details of the reserve.

A common scenario where operating reserves may be prompted can be when a source of a reliable income is withdrawn or reduced without expectation.

5 Resolution Ideas for Nonprofit Pros

Important Elements of an Operating Reserve Policy

Every organization’s policy is going to look different, but there are a few general areas that should be addressed.

  • Purpose– Why is it important for the organization to build and maintain reserves?
  • Definitions- How are the types of reserves, calculation of targeted amounts, and intended use defined?
  • How the reserve is funded– An operating reserve is only as valuable as its reliability. The policy should set out a practical plan for replenishment to the targeted amounts. Often, a worthy reserve goal is about three to six months of expenses. At the very least, on the low end, reserves should cover one full round of payroll.
  • When the reserve can be used– The plan should layout when the reserves can be tapped when unexpected shortfalls hit. The reserves should not be used to address foundational finance issues. In a “last straw” scenario, operating reserves can be used to close down the organization.
  • Classify the operating reserve as unrestricted– Unlike restricted funds that are marked for specific programs and projects, the operating reserve should be set as unrestricted so that the board and management can employ as they choose when the crisis calls for it.

Nonprofit Policy Special: 10 for Form 990

That’s Not All

Because each nonprofit is unique, each nonprofit is going to need policies and procedures tailored to their specific operations. That said, generally, there are at least 10 policies most nonprofits need to be prepared to address on the annual information filing, Form 990. Check out my free guide to nonprofit policies and procedures.

Reasons to Enlist an Attorney to Write your Nonprofit’s Policies

Additionally, keep in mind that an operating reserves policy should be written to correspond with any other financial-specific policies, like an investment policy.

Want to discuss your nonprofit’s policy needs? Don’t hesitate to contact me at 515-371-6077 or gordon@gordonfischerlawfirm.com. I’m based in Cedar Rapids, Iowa but will travel to meet with nonprofit pros all across the state.

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You Won the Lottery! Here’s What You Should Do Now

lottery balls

Pull out those lucky golden tickets because the Mega Millions lottery jackpot has reached a record $1.6 billion. (The Powerball isn’t too shabby either, at $620 million). Undoubtedly, we’ve all daydreamed about what we would do with cash like that. Maybe your dream is jet setting, paying off debt (and then some), funding educations for your entire family, building a swank mansion stocked with Teslas…but, let’s bring it back to reality for a moment and talk about two perfectly practical and important things you SHOULD add to that list if you’re suddenly a Mr./Mrs. Money Bags.

sports car in front of mansion

Make an Estate Plan

It’s definitely true that estate planning is not just for the wealthy, but that doesn’t mean it’s NOT for the wealthy too! Estate planning is essential for the effective and successful transfer of wealth for high net worth individuals. A quality estate planner will take all assets (from artwork to real estate to investments) into consideration when deciding what strategies, vehicles, and tools to maximize your goals, tax savings for your estate, and solidify your legacy. (You do not want to join the likes of these celebs who passed away without a will!) With a high net worth, you definitely need to consider different types of trusts in addition to how best to practice charitable giving through testamentary gifts.

If you already have an estate plan, that great! But, with a massive influx of wealth you’ll likely need major updates and revisions.

Think Estate Planning is Just for the Wealthy? Think Again!

Found a Private Foundation

Undoubtedly, if you come into massive wealth everyone is going to come out from the woodwork to try and get a piece of it. It’s great to share your winnings with the people and causes you care about, but you definitely don’t want fraudsters, scammers, or thieves looking to swoop in a take a piece of the pie. One of the best ways to protect your cash is by founding a private foundation. After you win, donate the money to your newly founded [Insert Your Name Here] Family Foundation of which you can serve as the executive director.

What’s the Difference Between Public Charity & Private Foundation

This is a smart move on multiple advisable fronts. For starters, because a private foundation is a charitable organization, you minimize your personal tax liability greatly. Furthermore, and more importantly, you get to use your endowed Foundation to support your charitable passion projects, help your community, and solidify a reputation for being an influential philanthropist. (Inspirational speaker circuit anyone?)

The private foundation, with its sound investment policies, is also a good way to have the principle grow significantly over time.

With a private foundation, you can serve as the executive direction and then hire family members and friends to essential administrative roles. Wondering how you actually “see” any of that money you transferred to your foundation? Salaries for such positions can be established based on private foundations of a similar size and wealth, so you can expect at least “enough” for an affluent life.

When founding a private foundation, enlisting an experienced nonprofit attorney is a must. Have your attorney advise on the IRS regulations you need to adhere to like filing the appropriate documents, refrain from political donations, and adopt important good governance policies and procedures. Additionally, you’ll want to avoid self-dealing like the plague! That means you can’t use foundation funds for your personal benefit, even if you founded it, because the foundation is completely separate different legal entity with a governing board of trustees who owe the foundation a fiduciary duty.

Person with fan of cash

There is much more to be said on the minutia of forming a compliant, successful private foundation, but we’ll save that for a future post! In the meantime, if you have questions, don’t hesitate to contact me!

You don’t need to be a lottery winner to establish a charitable organization (private or public)! With a mission, vision, and the tenacious drive to make an impact, you can form your own organization at any time if you follow the proper process. I’d love to help make your estate planning goals and charitable organization dreams happen at any asset level. Schedule your free consult or drop me a line via email or phone (515-371-6077).

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