From the moment you become a Foundation Copilot client, our private foundation tax specialists are ready to support you. Whether it’s filing Form 1023 your foundation’s official introduction to the IRS or proactively identifying tax-saving opportunities, our team does far more than simply prepare your annual return. Their expertise helps ensure that more of your funds go directly to charitable impact, allowing your foundation to achieve even more.

Key Tax Services We Provide:

Preparing and Filing Form 1023
Form 1023 is critical, as it is how a private foundation requests recognition as a tax-exempt organization. It also attracts IRS scrutiny and becomes publicly available once submitted. Completing it accurately is essential, and even experienced advisors often rely on specialists. Foundation Copilot professionals have successfully filed hundreds of Form 1023 applications, bringing nearly two decades of expertise to each submission.

The Form 1023 outlines how the foundation will operate, its expected expenses, assets, and charitable activities. Foundational documents, such as your charter, must be attached to demonstrate compliance with IRS requirements—ensuring the organization will be run exclusively for charitable purposes.

Preparing Form 990-PF and Other Filings
The annual Form 990-PF return can be complex. Many tax preparers are unfamiliar with its nuances, which can lead to missed tax-saving opportunities, errors in payout calculations, or unnecessary IRS scrutiny. Our tax specialists handle these returns carefully, completing over 1,700 annually, to help your foundation avoid pitfalls.

Quarterly Estimated Excise Taxes: While foundations generally do not pay income tax, they are subject to excise taxes on investment income and capital gains. When estimated tax liability reaches $500 or more, a 1.39% excise tax applies. For example, a foundation with $10,000 in tax liability would pay $139. Foundation Copilot calculates and remits these quarterly payments to help prevent penalties, preserving more of your charitable capital.

Year-End Forms 1099 and 1042: Foundations must issue Form 1099 for payments or reimbursements to U.S. contractors and Form 1042 for non-U.S. contractors doing business in the U.S. We track these payments through Foundation Copilot, preparing and distributing the required forms accurately.

State Filings: Foundations may have additional state obligations, including tax returns, franchise taxes, and registrations. We manage all necessary filings in your foundation’s home state and other states as required, ensuring compliance (additional fees may apply for multi-state filings).

Year-End Substantiation Receipts: Federal law requires written acknowledgment for charitable contributions. Foundation Copilot handles the preparation and distribution of these receipts on behalf of our foundation clients.