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.
To many nonprofits, foundation operations are shrouded in mystery. Because prospective grantees are seeking funding from foundations, there may be a perceived power imbalance. However, building strong and effective relationships with grantees can help foundations develop new knowledge and insights into issues, and to test and scale innovative strategies. Open communication, approachability, sharing lessons learned, and collaborative evaluation are key to developing strong partnerships with grantees.
In-Depth knowledge on Working with Grantees
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.
In these unprecedented times, grantors may decide that converting previously awarded project-specific grants to general operating grants is the best way to support grantees and enable grantees to respond to the needs of their respective communities. Use this sample replacement general operating support agreement to revise or amend your grant agreements.
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.
Legal recommendations on what to and what not to require from grantees.
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.