Grantmaking Policies

Oftentimes, grantmakers can rely on the rules applicable to private foundations or even their state’s nonprofit corporation law when seeking answers to thorny grantmaking questions. But what should a charity do when both the tax code and state statutes are silent on the matter? In such an instance, it is important that your foundation craft grantmaking policies to address these unanswered areas. From donor-initiated fundraising to granting to government to the types of gifts you accept, this section can help.

In-Depth knowledge on Grantmaking Policies

“If I create a fund at the community foundation, can my investment manager still manage the funds?” You may have already come across a donor that asked this question. Such a donor is essentially requesting that the fund they create be invested outside of the foundation’s investment pool(s). While there are cases where the answer must be “no” (e.g., donor wants the investment firm she owns to manage the assets), there are also cases where the answer should be “no.” A strong policy will guide the community foundation in those cases where the answer may be “yes.”

Grantmakers searching for more detailed information about the charitable status of their potential grantees may find the answers they need in the IRS’ Select Check tool.