What happens if my intended grantee cannot be certified as equivalent to a U.S. public charity?

If a grantmaker’s intended grantee cannot be certified, NGOsource will notify the grantmaker. The grantmaker then determines how to handle communication with the NGO about not being found equivalent to a U.S. public charity (thus not getting certified for an ED). At this point (1) the NGO may be able to immediately resolve the issue, (2) it may take further guidance and more work by the NGO to reach ED certification, (3) the grantmaker may not wish to continue the process, (4) in some cases the NGO may not be able to remedy the issues or it may otherwise prove impractical.

If the NGO resolves the issue immediately after a single follow-up, NGOsource will issue an ED at the regular rate. When the NGOsource legal team confirms that they cannot certify an NGO based on the current facts, NGOsource will follow up once with the grantmaker and NGO to see if the necessary action to become ED certified is something the NGO can resolve immediately. If this last guidance and the NGO response resolves the issue immediately, then NGOsource will issue an ED certification for that NGO.

If ED resolution requires additional time and the grantmaker wants to continue, NGOsource can extend services by offering limited support at a fixed rate to cover our costs. This will be a fixed fee of $200 for roughly an hour of time from a member of our team, which might involve providing sample text for governing documents or answering questions via email. After 6 months, if the NGO has not submitted the requisite materials to certify the NGO for ED, the NGO will remain in the NGOsource system as pending further input (unapproved ED status). After that 6-month period, in most cases NGOsource can extend services further for a fixed fee of $400 to review the case again. This fee should cover the additional cost of collecting and reviewing the new information and/or any updated financials.

Alternatively, if a grantmaker wishes to make a grant to an NGO that could not be certified, it can consider using the expenditure responsibility (ER) process. NGOsource does not provide support for the ER process. Although NGOsource does not provide support for the ER process, in many cases we can provide information collected from the NGO to support a grantmaker’s pre-grant inquiry for ER.