By conducting a full and thoughtful review of last year’s grantmaking priorities, social impact, and finances, foundation members can craft meaningful goals for the foundation and even for themselves.

When conducting your annual review, here are some topics you might want to discuss together:

1. The foundation’s fiscal realities and future forecast

• How did last year’s distributions compare to our 5 per cent minimum distribution requirement? In the coming year, do we plan to exceed that distribution rate? If so, by how much?
• What level of return did we receive on last year’s investments? Will this enable us to keep pace with our planned distributions for the coming year?
• Will we have sufficient cash flow and cash reserves  to meet  operational needs?
• Will we be receiving additional assets?

2. Anticipated spending

• How much of our budget did we spend on nonprofits that we have traditionally supported? What do we want to spend  on these historical interests next  year?
• How much of our budget was spent on targeted programs or new opportunities? Was the budget sufficient?
• Will  we want to set aside a “rainy day” fund for serendipitous opportunities that might present themselves?

3. Discretionary funding

Unless there are restrictions in the charter documents to prohibit it, the foundation can give board and/or family members a set amount of discretionary funds each year to donate as individuals.

Advantages: Fosters enthusiasm and engagement because foundation members can fund organizations of personal interest; incubates new programs and projects; expands the foundation’s footprint.

Disadvantages: Diverts resources and focus from a common mission; might confuse nonprofits and the public about the foundation’s priorities; might deter personal giving.

• If we want to institute discretionary funding, what will be our guidelines?
• Will discretionary grants be subject to board approval?
• Must these grants be made in certain geographic areas?
• Are certain types of organizations off-limits?

4. Impact assessment

• By current measures,  what was our impact for this year?
• What impact do we anticipate for next  year? What realistic goals can we set?

5. Mission scope

Taking all of the foregoing questions and answers into account, the foundation may want to take the opportunity presented by a year-end review to re-examine the scope of its mission.

• Given our current and anticipated resources, is the scope of our mission too broad? Too narrow?
• Do developments or set-backs within our area of interest necessitate a change of focus or emphasis?
• Do we feel that we’re getting traction in our areas of interest? Overall, are we satisfied with our impact?

6. Personal satisfaction

The foundation was established to do good work, but that doesn’t mean it shouldn’t be fun for everyone involved. As you head into the next year, take stock of the following:

• How much time have we devoted to administration? Is it the right amount? Too much?
• Is the distribution of responsibility and workload fair and proportional? Is anyone resentful?
• Is each one of us engaged and committed to our work?
• Have we fully leveraged everyone’s talents and skills?

7. Does the foundation have any New Year’s resolutions?

• What accomplishment are we most proud of from the previous year?
• What were the challenges that went unmet?
• What do we want to do differently next  year?