Does anyone have a process for asking applicants and/or grantees if their organization is involved in any type of litigation?
In a situation you described earlier today to me, would you have a suggestion here?
@LisaDiehl , @VondaCarr
Not so much about involved in legal action. But our grant process has an electronic signature and declarations that states:
The Authorized undersigned hereby certifies that:
1) All the information contained in and submitted with this proposal is correct and submitted with the approval of the Organization's Board of Directors; and,
2) The IRS approved tax exempt status of this Organization is still in effect as of this date; and
3) This Organization does not support or engage in any terrorist activity; and,
4) If a grant is awarded to this Organization, the proceeds of said grant will not be distributed to, or used to, benefit any organization or individual supporting or engaged in terrorism, or used in any other unlawful purpose.
(I added that #2 after the situation I had with an organization who's IRS status was revoked.)
You could add a statement about being involved in litigation.
We have an Eligibility section that asks grantees to state their IRS nonprofit status (and where we ask them to upload their letter of nonprofit status or other proof of nonprofit status - since we make grants to schools, government units and churches).
Using a section like that - you could ask that question along the lines of
Is your nonprofit currently in good standing with the IRS?
Or Is your organization currently involved in any type of litigation?
And this statement is part of our Grant Agreement (a follow-up form) a radio button question..
Grantee warrants and represents that its receipt of this grant will not adversely affect the grantee’s status as a public charity under Section 509(a) of the Internal Revenue Code.
Grantee agrees immediately to notify CFGC, in writing, if:
a) Grantee’s federal tax status is revoked or altered;
b) Grantee has reasonable grounds to believe that its tax exempt status may be revoked or altered; or,
c) Grantee has reason to believe that these grant monies cannot be or continue to be expended for the specific purposes detailed in its proposal.
In the event that Grantee's tax exempt status is revoked or altered before all funds under this grant are dispensed, this grant contract will be considered null and void and all obligations of CFGC hereunder will terminate.
I do not agree
@LisaDiehl much like in our conversation yesterday - I don't think too many people really read these anyway. :(
Good luck, @VondaCarr
Community Foundation of Greene County, Pennsylvania
Thank you for your response. We will be taking the responses I received from several message boards to committee later this month. I am looking forward to the way we will move forward with this topic.
@VondaCarr Let us know how it goes!