Posts by Adrian Bordone

Have We Properly Verified the Tax-Exempt Status of Our Grantees?

Posted by Adrian Bordone on January 11, 2017

Every grant award offers a potential risk that should be understood and properly mitigated. Providing grants to a charity that has had its tax-exempt status revoked — even unknowingly — can lead to the disbursement being considered a taxable expenditure, prevent foundations from meeting the annual 5 percent distribution requirement, and cause the IRS to levy excise taxes — stiff fines — on the foundations involved.

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