News for nonprofits A reported decrease in charitable contributions may have you wondering who’s going to fill the gap. GuideStar recently asked charities to compare contribution levels for March through May 2009 with those for the same period a year earlier. Of those responding, 52% said contributions had decreased, 29% reported they’d stayed about the same, and 18% indicated contributions had risen from the prior year. Page Snow of the Foundation Source, an administration services provider, wrote in August that, of the 72,000 foundations in the United States, fewer than 50 have endowments of more than $1 billion.” The vast majority — more than 90% — have endowments of less than $10 million, and most of these organizations are family foundations. Snow released the figures in “Applying for Funding from Family Foundations: Results of a New Survey,” which appeared on GuideStar.org. Although family foundations may have relatively small endowments, their sheer numbers appear to make them a logical source for charities in which contributions no longer cover budgeted expenses. What should you bear in mind as you approach this audience amid the stiff competition? According to the Foundation Source survey, relationship building is the most essential part of the fund-seeking process. Of the 120 respondents, 77% said they don’t consider unsolicited requests. So, if you’re not already building bridges, it may be time to start. Heads up, foreign account holders Do you have authority over — or are you the signer on — a bank or financial account in a foreign country at any time during the calendar year? If so, you or your organization will likely need to file a Foreign Bank and Financial Accounts (FBAR) report, Form TD F 90-22.1. The report is customarily due the June 30 after the calendar year, but a recent extension gives filers a break. IRS Notice 2009-62, issued Aug. 7, provides that individuals and organizations that need to file an FBAR report for the 2008 and earlier calendar years have until June 30, 2010, to do so. According to the IRS, a foreign financial account includes any bank, securities, securities derivatives or other financial instruments account. The agency is proposing that the definition also include foreign financial accounts in which the assets are held in a commingled fund and the account owner holds an equity interest in the fund, such as mutual funds or private equity funds. Penalties for failing to file the FBAR report can be substantial — up to $500,000 — and can include |