Validating the Tax Status of Grantees

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Categories: Supporting Your Foundation

Search Topics: Basic Grantmaking Compliance

Before making a grant, a private foundation must validate the status of the nonprofit to ensure that it is a 501(c)(3) public charity and in good standing with the IRS. Because the IRS may revoke an organization’s public charity status at any time, the foundation must validate the status each and every time it makes a grant, even if granting to the same organization. Granting to an organization that is not a designated public charity can expose the foundation to financial penalties.

This white paper outlines the requirements for validating a grantee’s status and provides resources to simplify the process.

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