Private Foundation Grantmaking Strategies and Best Practices
Author: Clark Nuber, Sarah Huang
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Private foundations are expanding their approach to grantmaking, reaching communities and charitable causes in more innovative and impactful ways than ever before. This course provides a comprehensive, practical look at modern grantmaking strategies—including direct grants to individuals, program-related investments (PRIs), donor-advised funds, and foreign grantmaking using equivalency determinations.
Participants will gain a clear understanding of how these strategies operate, when they are appropriate, and the compliance requirements that accompany them. Through real-world examples and best-practice recommendations, this course equips foundation leaders, advisors, and practitioners with the tools needed to strengthen philanthropic impact while ensuring full compliance with federal tax laws governing private foundations.
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
Publication Date: February 2026
Designed For
This course is ideal for professionals responsible for managing, advising, or overseeing private foundations and their grantmaking activities.
Topics Covered
- Overview of grantmaking strategies for private foundations
- Grantmaking to non-charitable organizations and expenditure responsibility requirements
- Foreign grantmaking and the role of equivalency determinations
- Direct grants to individuals: rules, compliance, and documentation
- Program-related investments (PRIs): structure, benefits, and risks
- Working with donor-advised funds as part of a broader grantmaking strategy
- Best practices in grant oversight, monitoring, and recordkeeping
- Donor Advised Funds
- Best Practices for Grantmaking
Learning Objectives
- Identify a range of strategic grantmaking approaches private foundations may use to accomplish charitable goals
- Explain the benefits, risks, and compliance requirements associated with program-related investments
- Recognize when certain grantmaking activities require advance IRS approval or additional grant file documentation
- Determine when an equivalency determination is appropriate for international grantmaking
- Apply best practices to strengthen grantmaking oversight, ensure compliance, and mitigate risk under federal tax law
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of private foundations
Advance Preparation
None
