Navigating Faith and Regulation: Compliance and Competency in Religious Grantmaking
Session materials from PEAK2019.
In 2017, 75 percent of all giving in the United States was directed to houses of worship or religious-oriented charities. According to the Giving USA Special Report on Religion, religious motivation not only serves as the basis for many philanthropic decisions but also as one of the strongest predictors of charitable giving across all non-profit subsectors. Despite religion’s important role in charitable giving, many secular foundations shy away from making grants to religious organizations due to the ambiguity around determining whether houses of worship or other religious organizations are considered charities for federal tax purposes. Explore tactics for reaching a broader and more diverse community of grantees by including religious organizations. Identify strategies for minimizing risk in faith-based giving. Hear about the experience of a leading, national faith-based grantmaker in developing due diligence for religious institutions.
Participants will learn about:
The IRS definition of church structure and 14 characteristics of a house of worship or religious-oriented charity
Practices that allow foundations to meet IRS regulations for grants to faith-based organizations
Tips for addressing due-diligence scenarios in religious grantmaking, e.g. group exemptions, independent congregations, and individual missionary support
- Diversity, Equity, and Inclusion: Promote diversity, equity, and inclusion in grantmaking practices.
- Strategic Management: Promote organizational mission and goals and inspire colleagues to achieve them.