University-related foundations considering new entrepreneurial activities should examine several questions and criteria before pursuing such opportunities. Each foundation has its own strategic priorities, values, and culture, and what works for one may not fit another. While the differing historical, tax, and legal environments facing foundations could lead their executives and directors to different decisions, the following may serve as useful guideposts: (1) foundation leaders must ask if the inviting idea fits with what the foundation was created to do; (2) the appropriate board committee must ensure that staff thoroughly studies the financial realities of any nontraditional opportunity; (3) the foundation must consider whether it makes sense to take on a new activity without gauging the staff's expertise or competence or without adding additional staff; (4) the foundation must consider the extent to which the new activity will divert the attention of the senior staff or board from the core functions of the foundation; and (5) the perceptions of key constituencies must be considered. (SLD)