Here's how, in this new reality caused by the coronovirus pandemic, community foundations can play a vital role in supporting both individuals and small businesses.
Both public and private foundations (including donor advised funds) may grant to non-charities and sometimes, little or no due diligence is required. These Council resources will help ensure your foundation is compliant in its grantmaking procedures.
In-Depth knowledge on Grants to Non-Charities
You may wonder whether you can make grants to GoFundMe campaigns that are supporting localized efforts during disasters. Proceed cautiously: GoFundMe and many similar crowdfunding platforms are not registered 501(c)3 public charities, and therefore you need to examine carefully whether the campaigns hosted on these sites are charitable in nature.
Fiscal sponsorship provides a valuable tool for charitable entrepreneurs to realize their vision by working with an established charity that takes in tax-deductible donations and private-foundation grants to fund their charitable activities. This chapter of Mastering Foundation Law: The Council on Foundations Compendium of Legal Resources focuses on the basic elements of fiscal sponsorship, the predominant models and their relative advantages and disadvantages, and the mechanical aspects involved.
May corporate grantmakers make grants to units of government such as public schools or local parks departments?
With a little caution, community foundations can support the charitable activities of non-charities.
Taking on fiscal sponsorship responsibilities and understanding the difference between fiscal sponsorship and fiscal agency.