Submission of grant procedures
The request for approval must contain the following items:
1. A statement describing the selection process;
2. A description of the terms and conditions under which the foundation ordinarily makes grants to individuals;
3. A detailed description of the foundation’s procedure for exercising supervision over grants; and
4. A description of the foundation’s procedures for reviewing grantee reports, investigating possible diversions of grant funds, and recovery of diverted grant funds
If, by the 45th day after a request for approval of grant procedures has been properly submitted, the foundation has not been notified that the procedures are unacceptable, they may be considered approved from the date of submission until receipt of actual notice from the Service that they do not meet the requirements (the 45-day rule ).
When a fixed-sum grant is awarded while a foundation’s grant procedures are considered approved under the 45-day rule, installments paid after the foundation receives actual notice that its grant procedures are unacceptable are not taxable expenditures.
Additional information :
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