New reply from Kristen Tidwell
We allowed individuals to apply for On the Table grants. If they their project was awarded a grant, we initially tried to find a nonprofit that could serve as the fiscal agent for the project, if it made sense. However, for a small handful of grants that were awarded to individuals, we made grant payments directly to them with the stipulation that they had to submit expense receipts/invoices that totaled at least the full amount of the grant awarded. Recipients were required to sign and return a grant agreement outlining this requirement before grant funds were disbursed. In addition, we included the below language in the initial award letter:
"Please note that this grant is not subject to personal income tax and Blue Grass Community Foundation will not submit a 1099 to the IRS. By accepting these funds, you agree that 100% of grant funds will be used exclusively for expenses related to the grant project for which you have been awarded. As part of your grant report, you will be required to submit expense receipts/invoices that total the full sum of the grant amount awarded. If you are unable to provide the documentation needed, Blue Grass Community Foundation will have to file a 1099 and you will need to claim the grant funds for tax purposes. Therefore, be careful to track and save all projects receipts and invoices. "
Again, this was only necessary for a handful of recipients to whom we made awards.
Best of luck!
Original Post by Sandi Vidal
Grants/Awards to Individuals
We are doing an On the Table type event where we plan to have mini-grants as part of the process. Some organizations have made grants/awards directly to individuals. Does anyone have a written procedure for this?