Daniel N. Belin is the owner of Belin Consulting, which provides consulting services to charitable foundations and their trustees. He is the author ofCharitable Foundations: The Essential Guide to Giving and Compliance(Five Columns Press, 2015).
Federal statutes and regulations that apply to charitable foundations are complex and frequently misunderstood. To add to the confusion, they often are counterintuitive. Here are just a few examples of rules governing foundation grantmaking that I, on numerous occasions, have found to be misconstrued or misunderstood:
Myth No. 1: Foundations are only permitted to support 501(c)(3) organizations.