Legal and Financial Advice for Foundations Operating in the United States and Abroad

Foundation Management: Innovation and Responsibility at Home and Abroad
edited by Frank L. Ellsworth and Joe Lumarda

Foundations today cannot continue to conduct “business as usual,” write Frank L. Ellsworth, a vice president at Capital Research and Management, in Los Angeles, who coordinates services for endowments, and Joe Lumarda, executive vice president of external affairs at the California Community Foundation, in Los Angeles. They say that foundations need to be both responsible and innovative in the face of the current economic downturn and demands for greater accountability. This collection of essays from accountants, lawyers, and others working for or with foundations offers practical advice on how foundation managers can expand their operations abroad and maintain their financial viability.

The book begins with a discussion of trends in international philanthropy. The authors say that tax laws regulating U.S. foundations making grants to organizations in other countries are still evolving, and one chapter summarizes those laws. Subsequent chapters cover the current state of giving in Europe and Asia as well as philanthropic programs on both sides of the Mexico-United States border.

The book discusses how to develop an investment portfolio that is sufficiently conservative to avoid jeopardizing the grant maker’s assets. The authors warn that risky investment strategies have caused some foundations to cut their grant making. They also caution against self-dealing by trustees and describe the roles that lawyers and accountants should play in ensuring that a foundation is able to fulfill its mission and meet all legal standards.

Publisher: John Wiley & Sons, 1 Wiley Drive, Somerset, N.J. 08875; (800) 225-5945; fax (800) 597-3299; http://www.wiley.com; 312 pages; $70; I.S.B.N. 0-471-26979-4.