In its 18th year, the Annual Private Foundations Executive Symposium explored the evolving landscape shaping private foundations, with discussions centered on policy and regulatory developments, investment and fiduciary oversight, emerging applications of artificial intelligence and key updates affecting private foundation compliance.
Watch Replay Here
Executive Summary:
Current Environment and Tax Policies
This session examined major legislative and policy trends, including intense negotiations surrounding the “One Big Beautiful Bill Act.” Although a proposed tiered excise tax on large private foundation endowments was ultimately removed, its introduction reflected growing misunderstandings about foundation payout rules and increased willingness among lawmakers to consider taxing philanthropic assets. The session also explored heightened congressional and administrative scrutiny of nonprofits, expanded investigative activity and the broader policy narratives influencing regulatory attention in advance of the 2026 elections.
Investment Due Diligence and Risk Mitigation
This session focused on the sharp rise in non-investment risks, including fraud and cyber-enabled threats that have escalated despite strong market performance. Discussion highlighted the unique vulnerabilities of private market investments, such as opaque valuation practices, varied governance standards and heavy reliance on internal manager controls. Case examples illustrated how insufficient verification can result in significant financial exposure. The session underscored the importance of strengthening operational due diligence, improving fee transparency and enhancing oversight frameworks to better safeguard foundations.
Technology and AI in Grantmaking and Operations
This session explored the expanding role of artificial intelligence within philanthropy and the gap between widespread individual experimentation and limited enterprise-level governance. Speakers examined challenges related to data privacy, accuracy, ethical use and the risks associated with unsecured AI tools. The discussion emphasized the need for clear data governance, transparent communication and cross-functional collaboration to ensure AI supports organizational effectiveness rather than driving decision-making independently.
IRS Update and Regulatory Outlook
The Symposium concluded with an overview of regulatory developments affecting private foundations, including the ongoing implementation of provisions within the “One Big Beautiful Bill Act.” While no direct statutory changes were enacted for foundations, scrutiny of nonprofit funding flows and grant activity is expected to increase. Foundations were advised to maintain rigorous documentation, ensure compliance with confidentiality rules and collaborate closely with advisors as the federal regulatory environment continues to evolve.
Hosts:
PKF O’Connor Davies
Thomas F. Blaney, CPA, CFE, Partner
Christopher D. Petermann, CPA, Partner
Practice Leaders of Philanthropic and Foundation Services