When disasters such as the recent southern California wildfires and other crises strike, private foundations are poised to help quickly by granting directly to individuals. In addition to disaster relief, private foundations can also provide hardship assistance grants, scholarship grants, awards, and even prizes. Regardless of what type of grants to individuals a foundation may choose to make, certain procedures must be followed to remain compliant with IRS rules. Join our Chief Legal Officer and Deputy Legal Officer who will clear up some common misconceptions and share the special considerations when making grants to individuals.
Some of the topics covered will include:
- Why would a private foundation want to make grants to individuals?
- When is IRS approval needed and what’s at stake when a private foundation doesn’t comply with applicable IRS rules for grants to individuals?
- The IRS requirements applicable to grants to individuals (other than possible advance approval).
- Types of grants to individuals and special requirements for each (scholarships/emergency/financial hardship/prizes and awards).
- Special rules for employer-sponsored disaster relief and employer-related scholarships.
CFP, CIMA®, CPWA®, CIMC®, RMA®, and AEP® CE Credits have been applied for and are pending approval
ABOUT FOUNDATION SOURCE
Foundation Source is the leading provider of philanthropic software and services. A pioneer in philanthropic technology, Foundation Source is the partner of choice for integrated, enterprise-grade solutions spanning private foundations, donor-advised funds and planned giving programs. Its flexible suite of tools and resources include end-to-end administrative support for the most popular charitable vehicles, specialized compliance, tax, development and consulting capabilities, and deep domain expertise to help maximize impact, mitigate risk, and improve efficiency for all parts of the philanthropic ecosystem. Foundation Source works with donors, nonprofits, wealth advisors and financial institutions to launch, enhance or augment charitable initiatives with turnkey, white-label and outsourced offerings that meet a wide range of philanthropic objectives quickly, professionally, and compliantly.
As of December 31, 2025, Foundation Source supports more than 5,600 private foundations, 20,000 DAF accounts, and 1,700 nonprofits, administers more than $55 billion in charitable assets and facilitate more than 190,000 grants and planned gifts representing more than $4 billion in charitable aid annually.
