Foundation Administration and Management

Every foundation is required to keep complete books and records. Sterling compiles and maintains the required books and records. In addition, each foundation receives complete tax compliance services. We manage the information gathering, worksheet preparation, and tax filing (on both the federal and state level) to make sure that the foundation retains its tax-exempt status. We maintain archival copies of returns and necessary back-up information. We also monitor changes in federal and state tax laws and regulations, and make adjustments as needed.

We also manage all the necessary state and corporate requirements for each foundation. We maintain the foundation's good standing — including all necessary organizational and attorney general filings, state filing fees, and required informational reporting. We make sure that necessary items such as annual meeting minutes are completed and that organizational books and records are in proper order. Sterling also creates and maintains complete grant compliance files for each foundation. Unlike gifts from individuals, gifts from foundations must be carefully and specifically documented in order to be legal distributions. Critical pieces of information must be obtained. Many non–professionally– managed foundations simply write checks and do not perform the due diligence required by law. Failure to conduct required due diligence can result in the payment of steep excise taxes. Even worse, it can threaten the deductibility of your gifts to the foundation.

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