What are the most common reasons Grassroots Grants proposals are ruled ineligible?
There are three common reasons proposals are returned because they are ineligible: • A) The applicant does not have required tax-exempt/public charity status. Only 501(c)(3) organizations that are not private foundations, or that are publicly supported, are eligible to apply for Grassroots Grants. Other 501(c) organizations [e.g., 501(c)(4) or 501(c)(6)] are NOT eligible for Grassroots Grants. 501(c)(3) status is granted by the Internal Revenue Service. It is not enough that the organization has no money or does not make a profit or that it is registered with the State Corporate Division as Nonprofit or it has submitted an application to the IRS but has not yet received a determination letter. In addition to 501(c)(3), the organization must be determined by the IRS to be a public charity and not a private foundation under 509(a). [In 1969, the U.S. Congress required the IRS to differentiate between public charities and private foundations, so the IRS added section 509(a) that establish
