How to Apply if You Are Not an IRS 501(c) (3) Organization

Note: this information will be required at the stage in the application process where a full proposal is requested from you. It is not required as part of a letter of inquiry.

As a private foundation, we are not allowed to use fiscal agents in the process of grant making. For those organizations that do not have 501(c) (3) status with the Internal Revenue Service, there are two alternatives though these types of grants are rarely awarded:

Expenditure Responsibility

Expenditure responsibility is only slightly different from the approach we take with other grant requests. This process effectively places responsibility for determining the charitable status of funded activities on the Foundation (rather than the IRS), but it also allows us to make grants directly to organizations such as yours without going through intermediaries.

In addition to the proposal requirements listed on the standard grant application, expenditure responsibility requires us to obtain the following:

• A copy of your organization's charter or official statement of purpose. This helps us to define the charitable nature of your work.
• Letters of support from organizations that have worked with you in the past and/or provided funding to your organization. We will use them to recommend your managerial and programmatic capabilities.

If your organization receives a grant from the Foundation, you will be asked to keep Public Welfare Foundation funds in a separate account along with other funds received for the same work. At the end of each year, we report directly to the IRS on the progress of your grant.

Fiscal Sponsorship

A fiscal sponsor is an organization that has agreed to work with you because in doing so, it furthers its own charitable purpose. For those organizations applying to us with a sponsor, we require:

• A copy of the agreement between the fiscal sponsor and you, in which the responsibilities of each organization are outlined. Click here to go to the sample agreement.
• A copy of the fiscal sponsor’s organization budget.
• A copy of the fiscal sponsor's most recent financial statements.
• A copy of the fiscal sponsor’s most recent year-to-date unaudited financial statement.