Although private foundations routinely grant to charities and other nonprofit organizations, many philanthropically inclined individuals don’t realize that foundations may also make grants to individuals. Our foundation clients use these types of grants to provide relief to victims of forest fires, hurricanes, and terminal illness. The recipients can use the funds to pay for everything from roof tarps to emergency cooking and heating equipment. As long as certain procedures are followed, the IRS permits private foundations to make hardship and emergency grants to individuals without seeking prior approval.
Based on IRS publication 3833, Foundation Source has created a streamlined process and forms for our clients to make these types of grants. Learn more in this article.