Idaho 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
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).
Grants to a 501(c)(4) Organization While a 501(c)(3) organization may be prohibited from distributing its remaining assets upon dissolution to a 501(c)(4) organization, it can make a grant to a 501(c)(4) organization.
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.
Private foundations may make grants to 501(c)(4) organizations (or other non-public charities) as long as the grant is for charitable purposes. Charitable purposes include any permissible 501(c)(3) public charity activity except lobbying and voter registration.
A volunteer fire department is an example of a 501(c)(4) eligible organization. In contrast to a 501(c)(3) nonprofit, a 501(c)(4) can engage in some political activities. However, political campaign intervention for or against any particular candidate is prohibited as a primary activity.
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.
Can a 501(c)(3) organization change into a 501(c)(4) organization? 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.
A 501(c)(4) should only seek funds for a non-lobbying primary purpose activity and should ensure the grant funds are requested for nonpartisan work. For example, a 501(c)(4) that works with immigrants in its community could request grant funds to educate its constituents on new vote by-mail-processes.