The Importance of Vetting Grant Applicants
Author: Katherine E. David, J.D..
Source: Volume 20, Number 01, November/December 2020 , pp.13-16(4)
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Abstract:
The vast majority of private foundations achieve their tax-exempt purpose by making grants to public charities. While no rule prohibits a family foundation from supporting the same organizations year after year, at least occasionally, a foundation will consider making a grant to an organization with which it has no prior history. Family foundations that regularly solicit grant requests may have established procedures for reviewing applications and vetting applicants. And, over time, their knowledge of past grant applicants and recipients becomes a measuring stick against which to compare current applicants. Newer family foundations or family foundations that historically have given to select, familiar organizations and that have not established review procedures can use publicly available information to identify those organizations that can put the foundation’s money to best use.Keywords: Charity Scams; Diversions of Assets; Tax Exempt Organizations Search; Form 990
Affiliations:
1: Clark Hill PLC.