Question: Fred we are just getting started with our foundation. I am interested in learning how other foundations meeting the IRS requirements of obtaining statements of good standing and the most recent letter of determination with the organizations the foundation chooses to support. What steps do others take to make sure they are always in compliance? Is there any way to verify this information?

Thank you for your time and effort to reply. It is appreciated.

Thank you for responding to “Ask Fred” on the website.  Here are starting points: 

1.  Proposal cover letter from the Chief Executive Officer to include:  endorsement of the proposal explaining how it relates to the organization’s mission and priorities and certification statement that the 501(c)(3) tax exemption and 509(a) non-private foundation rulings are still correct and that no modifications are planned or pending.

2.  501(c)(3) tax exemption ruling letter from the United States Internal Revenue Service (IRS) for the current legal name showing you are not a private foundation.  If tax exempt under a group ruling for a central organization attach the latest certificate of membership.

3.  Stewardship checks with the IRS website http://www.irs.gov/app/pub-78/ when the proposal arrives as well as the day any checks are cut printing a copy from the IRS site showing the grantee/grantseeker is currently still listed as a public charity – this is attached to our copy of the check in case of audit (shows due diligence).

As well we (The Gathering) use GuideStar (www.guidestar.org) and they provide accurate and up-to-date information on many many non-profits. 

Thanks again for your question!

Fred

Let me know if there is anything else we can do to help.