Skip to main content

Ask NCFP: Can we make grants to a non- 501(c)(3) organization?

Editor’s note: The information in this article is not a substitute for expert legal, tax, or other professional advice. The information is also subject to change. Please consult a professional advisor for specific legal or tax questions and issues. If you are an NCFP member, we’d be happy to introduce you to a verified professional through our legal referral service.

The short answer is, absolutely. Foundations are allowed to make grants to non-charities. They have to follow special procedures under Section 4945 that are called expenditure responsibility. The basic rule is that the fund have to be used for charitable purposes, not something else, but you can grant to 501(c)(4)s, 501(c)(6)s, and even for-profits, as long as you follow the right procedure.