What's the difference between a private foundation and a public charity?

A private foundation is typically funded by one source, like a family or company, and files Form 990-PF under a specific excise-tax regime. A public charity, including a community foundation, draws broad public support and files a standard Form 990. We work with both.

What is Form 990-PF and who has to file it?

Form 990-PF is the annual information and excise-tax return private foundations file with the IRS, due the 15th day of the fifth month after the fiscal year ends. It reports investment income, distributions, and any excise tax owed. We handle the filing and the underlying calculations.

What is the 5% minimum distribution requirement?

Private foundations must distribute a “distributable amount” each year, based on 5% of the average fair market value of their non-charitable-use assets. Miss it, and the foundation owes a 30% excise tax on the shortfall. We calculate and track this throughout the year, not just at filing time.

How is the excise tax on net investment income calculated?

It depends on the scope. Tax filings alone cost less than ongoing bookkeeping, audit support, and CFO-level advisory combined. Rather than quote a number that won’t fit every organization, we start with a conversation about your revenue mix and reporting needs, then build a proposal around what you need.

What counts as self-dealing for a private foundation?

Self-dealing covers transactions between a foundation and a “disqualified person,” like a trustee, officer, or family member, including sales, loans, and compensation, regardless of whether the terms are fair. We help you structure transactions so ordinary foundation activity doesn’t accidentally cross that line.

Does our foundation need a financial statement audit?

It depends on your bylaws, funders, and state requirements, not a single universal rule. As a foundation audit Seattle firm, we handle both financial statement audits and any Single Audit triggered by federal funding, and can tell you which applies once we know your specifics.

Private Foundation CPA & Accounting

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Accounting, Tax & Advisory for Private Foundations

From the 5% distribution rule to Form 990-PF, we handle the numbers behind your grantmaking so you can focus on your mission.

Serving Seattle-area foundations since 1971 · Licensed WA CPAs

Accounting Built Around How Foundations Actually Operate

OUR CLIENTS

The Challenges Foundations Face — and How We Help

How do you meet the 5% minimum distribution without over- or under-distributing?

How do you handle the excise tax on net investment income?

How do you avoid self-dealing issues with foundation trustees and family members?

How do you manage accounting across dozens of donor-advised funds?

WHAT WE DO

How We Support Foundations

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Accounting & CFO Services

What Makes Foundation Accounting Different

Foundations Like Yours

Private family foundations

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Why Foundations Choose Greenwood Ohlund

Decades in nonprofit accounting

Tax, audit, accounting, and CFO expertise, one firm

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A relationship that runs all year, not just at filing time

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