Arizona Grant Agreement from 501(c)(3) to 501(c)(4)
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How to fill out Grant Agreement From 501(c)(3) To 501(c)(4)?
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FAQ
It is permissible for foundations to give grants to 501(c)(4)s, and an increasing number of foundations are seeing them as an important way to leverage their grant-giving to achieve their goals and protect investments that have already been made.
In addition to 501c3 organizations, 501c3 nonprofits can also donate to 501c4 organizations. These contributions must be used for charitable purposes, and no amount can be used for political activities.
Grants from a 501(c)(3) to a 501(c)(4) should not be made to cover fundraising costs or general support of the 501(c)(4) (this is to protect the 501(c)(3) from the grant being used for impermissible purposes).
If you plan to write a grant proposal, you should familiarize yourself with the following parts: Introduction/Abstract/Executive Summary. ... Organizational Background. ... Problem Statement/Needs Assessment. ... Program Goals and Objectives. ... Methods and Activities. ... Evaluation Plan. ... Budget/Sustainability.
In addition to standard terms describing grant amounts and purposes, agreements also include provisions regarding intellectual property rights, reporting requirements, and indemnification, among other subjects. Special provisions are included that deal with international philanthropy.
Although the exact amount varies from organization to organization, nonprofits are often advised to keep between 3 and 6 months of operating funds on hand as cash reserves, if possible. Funds that will be used in the longer-term are sometimes invested in less liquid, often higher-risk instruments.
A 501(c)(3) organization cannot change into a 501(c)(4) organization. But it can dissolve to create a new 501(c)(4) organization. The dissolution clause may prevent the old nonprofit from distributing its assets to the new one, while still allowing it to make a grant with certain restrictions.
In addition to 501c3 organizations, 501c3 nonprofits can also donate to 501c4 organizations. These contributions must be used for charitable purposes, and no amount can be used for political activities.