Can the AMA Foundation give Healthy Living grants to non-501(c)(3) organizations?
Yes, the Foundation can give grants to non-501 (c)(3) organizations, but the Foundation retains the burden of proving to the IRS that the activity served a charitable purpose and not an associational, fraternal, social or other purpose. No such burden exists when the grantee is another 501 (c)(3) organization. The mere fact that it is a 501 (c)(3) relieves the AMA Foundation of further monitoring obligations. To ensure that all of the Healthy Living grants are used for charitable purposes, the Foundation requires a budget from the grantee before making the grant, an agreement that the grant will be used solely for the purposes outlined in the grant application, and a follow-up report confirming that the funds were spent in accordance with the budget or showing any deviation. The grant agreement will reflect that in all documents or publicity for the project, the AMA Foundation will be given credit as a funding source.
