17th Annual Private Foundations Executive Symposium
As the curtain is drawn on 2024, we hope our 17th Annual Private Foundations Executive Symposium teed you up to navigate the challenges and opportunities ahead. From the impact of the 2024 election to advancements in AI and pressing tax and cybersecurity issues, watch this event for a dynamic and insightful experience.
Executive Summary:
- Introduction and Overview
In its 17th year, the Symposium explored pressing topics impacting private foundations, including the global economic crisis, governance challenges, tax policy developments and advancements in artificial intelligence (AI). A notable theme was the importance of leveraging institutional partnerships, such as those with the FBI, to address cybersecurity concerns. Sarah Barba, the opening speaker, analyzed the implications of recent election outcomes on foundations. - Political Environment and Tax Policies
The discussion centered on the shifting dynamics within Congress, highlighting the influence of Republican leadership in both the House and Senate. Policy priorities were outlined, with an emphasis on proposed tax reforms targeting the nonprofit sector. Concerns about the potential passage of HR 9495 were raised. The session also examined how tax reform proposals, including increased corporate tax rates on nonprofit investment income, might impact the sector. - Regulatory Compliance and Risk Mitigation
Practical strategies to enhance compliance included regular staff training, maintaining updated disqualified-persons lists, enforcing conflict-of-interest policies and seeking legal counsel when necessary. The session provided a historical overview of the excise tax on private foundations and urged the sector to advocate against unfavorable provisions. Key IRS focus areas—such as self-dealing, payout requirements and accurate tax filings—were addressed, with illustrative examples of violations underscoring the critical need for proactive compliance measures. - The Role of Technology and AI
Technology’s transformative role, particularly in AI, was a major focus. While 80% of foundation staff reported experimenting with AI tools, only 30% had established AI policies. Concerns about security in remote work settings and the importance of proper data destruction practices for cloud-based documents were emphasized. Topics ranged from grant-making system optimization to salesforce customizations, highlighting the integration of AI in operational tools. Attendees were encouraged to prioritize robust data policies and tech adoption strategies. - Cybersecurity Concerns and Mitigation
Cybersecurity threats, including ransomware, social engineering and supply chain attacks remain prevalent, with the human element often identified as the weakest link. The session highlighted the alarming projection of cybercrime costing $10.5 trillion annually. Best practices, such as conducting regular penetration tests and risk assessments were recommended for strengthening cybersecurity frameworks, reducing insurance premiums and managing organizational risks.
Hosts:
PKF O’Connor Davies
Thomas F. Blaney, CPA, CFE, Partner
Christopher D. Petermann, CPA, Partner
Practice Leaders of Philanthropic and Foundation Services