We are brand new to Foundant. If your Charity Check does not pass on a grantee from a donor advised fund, what information do you require from the organization before you allow the grant to be approved?
If the organization is not a 501(c)3, then the next question is are they are qualified organization to receive a charitable gift (unit of government, for example). If they are NOT a 501c3, does the organization have a charitable arm that the grant can be dispersed to? IF so, get that EIN. The only time I bypass the charity check is when I know for certain that the grantee is a qualified organization. Does that help?
Thanks, @pamfarrar. Since the Charity Check doesn't give a reason for the "fail", I wasn't sure if that mean the org is not a 501c3, or perhaps another reason where you would request additional information from the organization, such as an updated 501c3 tax determination letter, or other??
It is always a good idea to confirm you have the correct number, as it could be a error/typo. I don't believe CSuite tells you the reason why, only that they're not a 501c3. Sometimes the organization will give you what they believe is a charitable EIN, but it is not. I've had to call back churches to find out if the Church or if the Church uses a larger "umbrella" EIN that the church uses to receive charitable gifts, but churches are considered a qualified organization, but our CF is trying to get a charitable EIN if the organization has one. Hope that makes sense.
Great, thanks Pam!
Hi, I ask the nonprofit to send proof of exemption but sometimes they are not aware if their exemption has been revoked. I also check the IRS website if GuideStar comes up unverified because GuideStar is not always up to date with info.
Great, thank you Johnna. I will check the IRS website, as well.
This has only happened to us once in 10 years. I notified the organization, which knew there was a problem. They supplied us a letter from the IRS showing that the organization had notified the IRS about the problem and that the IRS was working on it. This was a large organization, which had passed Charity Check for years.
We do the same as Johanna in checking the IRS website and asking for their exemption letter. Like so many other things this past year, there was a greater delay in organizations being able to get their tax exempt status, but I heard recently that it is picking back up again. As a suggestion, I try to do the charity check shortly after an organization begins their application so that they don't waste a lot of time if they aren't eligible or they have time to follow up on their exemption application. As a side note, we are able to grant to school districts, churches, and governmental agencies but they won't usually pass the charity check.
Thank you for your comments and advice!
If I get an invalid or failed result from CSuite I usually go into GLM from there and keep digging. Sometimes its an easy fix by digging more in GLM. However, if not, I will then try good old Google and see if the organization has a "donate" tab where the EIN is sometimes listed or where you can find the bigger "umbrella" org info. From there, I contact the organization and have a conversation about needing to send them a donation and what I need in order to do so. I do that extra step to ensure the money goes where the donor wishes it to instead of a general pot for the main org. Arms of government and churches are exempt so I don't pursue those very far. We have one DA fund that distributes to many Buddhist organizations across the country and I've been deep down in some rabbit holes with that.