Grant due diligence
Hello everyone,
We are just getting started and trying to make sure we gather the important details for a grantee before we process a grant. Does anyone have a comprehensive list that they could share? One specific question is do you always need to have a W9?
Best Answer
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We collect their EIN in the application so we can verify their 501c3 status through GLM right away. We also collect their local nonprofit certificate if they are only a local nonprofit and not a 501c3. When getting ready for payment, I collect a Direct Deposit Form from them so we can process the payment electronically. No need for a W-9 as we have their EIN already which we save in Quickbooks and Foundant. We also verify the signatory on the grant agreement and make sure the paperwork is signed and filed prior to releasing funds.
Depending on the funding source and type of grant we may also collect Financial Documentation such as Most recent audited financial statements, Current year operating budget, IRS Form 990 (most recent). We would also verify if they have a conflict of interest policy and what their internal accounting practices are - we do this through a Risk Assessment Form in Foundant and then have a meeting with the grantee to go over everything.
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Answers
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This is a great question! I've seen lots of due diligence 'checklists' that folks use. One thing I see on almost all of those lists, usually at the top, is a charity check, which can be done in-system with GLM.
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@KatieDecker Thanks for the input! That's helpful.
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We collect their EIN in the application so we can verify their 501c3 status through GLM right away. We also collect their local nonprofit certificate if they are only a local nonprofit and not a 501c3. When getting ready for payment, I collect a Direct Deposit Form from them so we can process the payment electronically. No need for a W-9 as we have their EIN already which we save in Quickbooks and Foundant. We also verify the signatory on the grant agreement and make sure the paperwork is signed and filed prior to releasing funds.
Depending on the funding source and type of grant we may also collect Financial Documentation such as Most recent audited financial statements, Current year operating budget, IRS Form 990 (most recent). We would also verify if they have a conflict of interest policy and what their internal accounting practices are - we do this through a Risk Assessment Form in Foundant and then have a meeting with the grantee to go over everything.
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@BethNuttall That is so helpful. Thank you for those details. I'll add that to our checklist depending on the grantee. If you have any other best practices, I'd love to hear. Thanks again for sharing!
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