Making Grant Recommendations: Helpful Hints

The Gift Fund only makes grants that will be used exclusively for charitable purposes.

Despite donors’ best intentions, sometimes it might not appear that recommended grants will be used exclusively for charitable purposes. When this happens, we may contact you for clarification, which can increase the processing time of a grant.

You can help us expedite the grant process by:

  1. Clearly stating the grant’s "special purpose," if any, and
  2. Complying with grantmaking policies.

Be Clear if Recommending a "Special Purpose"

  • Clearly specify the recommended use of the grant. This is even easier to do online when you select from the pre-filled, special purpose dropdown list.
  • If you don’t have a special purpose in mind, do not indicate one — the charity can then use the grant where it is most needed.
  • Whenever possible, include the name of the organization’s contact person and their telephone number. This information is helpful during the verification process.

Be Sure Grant Recommendations Meet Gift Fund Policies

Complying with the following guidelines can help you continue to support the charities that are important to you.

  DO Don't
Charitable Galas and Fundraising Events Recommend a grant to support the overall charitable event by indicating in the special purpose that:
  • You are not attending; or
  • If you plan to attend, you are paying the full price of any tickets purchased separately out-of-pocket.
In either case, clearly state that you waive all benefits associated with the event.		 Don’t recommend a grant to be used toward a ticket to attend a gala or charitable event or to cover the tax deductible portion of a ticket to attend the event.
Memberships Recommend a grant to cover the cost of membership to a charitable organization:
  • If the organization confirms that its membership fee is 100% tax-deductible and that membership benefits are not more then incidental; or
  • You indicate in the Special Purpose section that the membership level does not provide you with more than incidental benefits.
 Don’t recommend a grant if more than incidental benefits will be received as part of membership or if the membership level has a non-tax deductible portion associated with it.
Enforceable Pledges Tell charities that you "intend to recommend a grant from your donor-advised fund in the amount of [$]" so they know your grant recommendation is being made in response to a charitable organization’s request for a pledge. Don’t recommend a grant to support an enforceable pledge because it creates a legally binding obligation or commitment that the Gift Fund can’t support.

An example includes a pledge to fund a new science center at a donor’s alma mater. If the college is reliant on the donor to complete the project, but the donor does not provide the money, the college will hold the donor to his/her obligation and seek recourse for non-payment.
Scholarships Recommend a grant for the purpose of supporting a scholarship program administered and overseen by the IRS-qualified public charity. Don’t recommend grants to support scholarships when you have sole or majority discretion regarding the recipient selection process.

To review all Gift Fund policies, access the Gift Fund Policy Guidelines: Program Circular (PDF)

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