Can a grant be made to sponsor or purchase tickets for a special function (e.g., gala, golf tournament, bridge tournament, awards dinner, etc.) that supports a charitable organization?
Maybe. We may not approve a recommendation if the grant will provide more than an incidental benefit to you, your family or others who attend the function. Unfortunately the term “incidental benefit” has not been precisely defined by the IRS. Basically, the intent of the law is to prevent you, your family and others from receiving economic benefits in return for the grants made from your fund.
