A Michigan Grant Agreement from 501(c)(3) to 501(c)(4) refers to a legal contract between a nonprofit organization that holds a 501(c)(3) tax-exempt status and a 501(c)(4) nonprofit organization operating in the state of Michigan. This agreement typically outlines the terms and conditions under which the 501(c)(3) organization provides financial assistance or grants to the 501(c)(4) organization. In the state of Michigan, there are various types of Grant Agreements that can be established between a 501(c)(3) and 501(c)(4) organization, depending on their specific purposes and goals. Some common types of Grant Agreements include: 1. General Operating Support Grants: These grants provide unrestricted funds to the 501(c)(4) organization to support its day-to-day operations. The funds can be utilized for various activities, such as staff salaries, rent payments, utilities, and administrative expenses, without any specific restrictions on their use. 2. Project-based Grants: Under this type of agreement, the 501(c)(3) organization provides funding for a specific project or initiative of the 501(c)(4) organization. The grant agreement will detail the objectives, budget, timeline, and reporting requirements related to the project. The funds provided are solely dedicated to the project and cannot be used for other purposes without prior approval. 3. Capacity Building Grants: These grants aim to strengthen the organizational capacity of the 501(c)(4) organization. They are often granted to support activities such as staff development, strategic planning, technology upgrades, or training programs. The grant agreement will outline the specific capacity-building activities that will be supported and any performance indicators or outcomes expected. 4. Advocacy or Policy Grants: Michigan Grant Agreements may also focus on supporting 501(c)(4) organizations engaged in advocacy work or policy reform. These grants enable the 501(c)(4) organization to further its mission by advocating for specific legislative changes, conducting research, or mobilizing public support. The agreement may include provisions regarding the permissible use of funds for lobbying activities within the legal limits. It is important to note that while 501(c)(3) organizations are tax-exempt and donations made to them are tax-deductible for donors, contributions made to 501(c)(4) organizations are generally not tax-deductible. The Grant Agreement should specify the tax implications and the responsibilities of both parties regarding the proper use and reporting of funds. In summary, a Michigan Grant Agreement from 501(c)(3) to 501(c)(4) establishes a formal relationship between these two nonprofit organizations, outlining the terms and conditions of financial assistance. The agreement can be tailored to different types of grants, including general operating support, project-based, capacity building, or advocacy grants, depending on the specific objectives of the 501(c)(4) organization.