Award Letter with ACH language
What language do you use in grants paid at award through ACH?
We use to process checks, but now our bank is stopping the service, and have to quickly move to ACH. Our award letters used to have the following language:
By depositing the checks, your organization certifies that, to the best of your knowledge and belief, no portion of this grant will be used to provide any private benefit, goods, or services to the donor(s), fund advisor(s) or any related party associated with the fund.
Looking to get some suggestions on how to word our award letters as we'll now be sending the money directly into their bank accounts...
Thank you!
Sincerely,
Juana
Juana Baribeau | Grants Process Analyst
Pronouns | she, her, hers
Hartford Foundation for Public Giving
(860)548-1888 x1011| jrondeau@hfpg.org
10 Columbus Blvd, 8th Floor, Hartford, CT 06106
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Answers
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We use the following along with a letter congratulating them. Hope this helps!
Unrestricted Grant Agreement
By returning the completed, attached direct deposit form, your organization agrees to the following terms and conditions:
1. This grant is for general support of your organization. Please contact the Foundation office if circumstances require a substantial deviation from your charitable purposes.
2. Your organization retains full discretion and control over the selection of any sub-grantees or individuals to carry out the work set forth in your proposal. In doing so, your organization will act completely independently of the Community Foundation of Northwestern Alberta.
a. at the end of the grant period, or
b. if the Foundation determines that the grantee has not performed in accordance with this agreement, or
c. if the grantee loses its exemption as a Qualified Donee under Section 110 of The Income Tax Act (Canada.)
3. No funds provided by the Foundation may be used for any political campaign, or to support attempts to influence legislation by any governmental body, other than through making available the results of non-partisan analysis, study and research.
4. The Grantee organization is responsible for the expenditure of funds and for maintaining adequate supporting records consistent with generally accepted accounting practices.
5. I hereby give my permission to the Foundation to use this Community Impact Grant, any pictures (and name, if required) in any print, electronic or web-based material prepared by the Foundation for information or promotional purposes.
6. All Community Impact Grants are made in accordance with current and applicable laws and pursuant to the Income Tax Act, (Canada) as amended, and the regulations issued therein.
7. Unless otherwise stipulated in writing, this Community Impact Grant is made with the understanding that the Foundation has no obligation to provide other or additional financial support to the grantee with reference to this grant.
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Hi-
We include this language in our letters/ grant agreements.
"Payment will be made via ACH upon receipt and confirmation of your organization’s banking information. "
Part of our process includes asking in the application (or follow-up) for the finance contact who will be invited to complete and upload a form we created to a secure portal. We also require a bank letter or voided check to confirm the information is correct.
Finally, we do a verbal confirmation for any new organizations or groups who have changed their banking information. We ask this question in a follow-up once the grant has been approved.
Happy to discuss further. I posted a thread on the PEAK board last month.
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Juana,
We utilize an outside vendor to process our ACH transactions called Bill.com. We still process checks in some instances where the organization is so small or they are volunteer based and ACH would be difficult.
I've attached a sample of our award letter which contains text about the Grant Agreement that must be completed and also the Grant Agreement itself.
These two documents together give us the information and approvals needed to generate the invitation to Bill.com. This process is simple for us and has been working well.
I'll be happy to discuss more if you're interested.
Joyce Brasher@df-al.com
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