NCF’s legal counsel cautions us about the risks involved when affiliated funds misrepresent themselves as independent legal entities. These risks are real and involve potential legal challenges to charitable bequests, contract fulfillment, grant disbursements and more.
Our legal advisors note that the most common misrepresentation—one that occurs frequently throughout the NCF system—is the use of the single word “foundation” as the marketing name for an affiliated fund. In the truest legal sense, an affiliated fund is not a foundation. We are advised that affiliated funds can remedy this by being sure to include the word “fund” to their marketing name.
Another common inaccuracy occurs when an affiliated fund refers to itself as a 501(c)(3) organization. Affiliated funds should be very clear that NCF is the 501(c)(3) organization. As a component part of NCF, contributions to your fund are tax-deductible.
Click below for examples that describe some common language guidelines affiliated funds should follow to avoid any unintended consequences.
Language Guidelines
