Advance Approval of Private Foundation Grants: Supervision of grants


To be approved in advance, a foundation’s grant procedure must provide for proper follow-up by the foundation to determine whether grantees have performed the activities that the grants are intended to finance and have not diverted grant funds away from the original purposes of the grant.  A procedure meets this requirement if:

  • Periodic progress reports must be made to the foundation, at least once a year, to determine whether grantees have performed the activities the grants are intended to finance,
  • When these reports are not made or there are other indications that grants are not being used as intended, the foundation must investigate and take corrective action, and
  • The foundation must keep records relating to all grants to individuals, including--

a.  Information obtained to evaluate potential grantees,
b.  Identification of grantees, including any relationship of the grantee to the foundation that makes the grantee a disqualified person,
c.  Amount and purpose of each grant, and
d.  Follow-up information, including required annual reports and investigation of jeopardized grants.

Requests for approval of grant-making procedures should be sent to EO Determinations, using Form 8940PDF. See the Instructions to Form 8940PDF for more information.

Additional information:


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