Grants to Non-Charities

In-Depth knowledge on Grants to Non-Charities

May a private corporate foundation or corporate giving program make a grant to a newly-established charity that has not yet received its IRS tax exemption letter?

Americans may disagree about various aspects of war, but there is broad support for helping the men and women who are fighting in wars and the families they have left behind. Dedicated assistance groups are working to provide aid to military personnel and their relatives. This article surveys the different purposes for which charitable grants can be made and discusses the role that grantmakers can play in those efforts.

Making grants to government entities is much easier than most foundation boards realize. Indeed foundations all across the country have made grants to school boards, government commissions and federal agencies. The tax code allows private and community foundations, as well as corporate giving programs, to make grants directly to government entities almost as if they were public charities. At a time when many grantmakers are interested in working with government to improve community welfare, knowing the rules can help maximize results.