ALL grant recommendations require the final approval by SCF Board of Directors. Our Board meets almost every month, except in January, to consider and approve requests received. To allow time for processing, we ask that Fundholders submit their SCF Grant Request Form at least five (5) business days prior to each Board meeting.
Donors/fund holders may request information about their Fund, their Fund balance, or the amount available to grant, at any time. Any changes in legislation, or IRS procedures and policies, are sent to fundholders as soon as possible, and before they are implemented by law. SCF in-house grantmaking processes are amended to reflect these changes, and action is taken to notify our Fundholders.
GRANTS FROM NON-SCHOLARSHIP FUNDS
Only the donor/fundholder of record is permitted to recommend grants from his/her Donor-Advised fund. We follow a stringent, in-house procedure that governs our grantmaking process.
- The donor must submit a completed Grant Request Form, providing information about the recommended grantee, the amount to be granted, and the purpose of the grant.
- SCF staff conducts due diligence about the eligibility of the recommended grantee (we check 501(c)(3) status, Form 990 filings, current Board of Directors, and financial documents).
- If eligible, the recommendation is listed on the agenda as an action item for the next SCF Board meeting.
- The SCF Board votes on all such recommendations, and is documented in meeting minutes.
- All approved recommendations are processed for award (disbursement); grant checks are cut, in-house accounting records are updated, and a grant letter is signed and sent to the grantee along with the payment. A copy of the grant award letter is also sent to the fundholder.
GRANTS FROM SCHOLARSHIP FUNDS
Only the donor/fund holder of record may authorize scholarship award disbursements from his/her scholarship fund. In compliance with recent federal legislation governing scholarships administered by community foundations, we follow precise selection, award, and processing procedures. If you have questions about the steps listed below, selection criteria, or award payments, please contact the Foundation.
- All scholarship recipients must be selected by a committee, and it must be a competitive process.
- The donor’s advice is limited to his/her role of serving as a selection committee member.
- The Foundation Board must annually approve procedures for selecting recipients insuring they are objective and nondiscriminatory. The Foundation Board of Directors must approve all members of the selection committee.
- The Foundation Board must annually review and approve application forms and documents, the rating criteria, and the selection procedures before the application process begins.
- The Selection committee reviews applications and conducts interviews and recommends scholarship recipients to the Fundholder. The committee chair lists the recipients on the Award Recommendation form and submits it to the Fundholder for payment authorization.
- Scholarship award recommendations are placed on the agenda as an action item for the next SCF Board meeting. If approved, recommendations are then considered scholarship grants.
- Scholarship grant payments are made only to the institution at which the scholarship recipient will attend, not to the student directly. Award notification letters are sent to scholarship recipients along with an Enrollment Verification Form.
- Scholarship checks and award letters are sent to the school. A copy of the award letter is also sent to the fund holder and the scholarship recipient.
HOW MUCH CAN I GRANT AND WHEN?
For Endowed Funds: Using the SCF current Spending Policy (SP) Fundholders may request disbursement of one or more grants annually, up to 3.7% percent of the total Fund balance. However, the amount requested is made from the Fund's earnings and may not “invade the principal” of the Fund balance. The principal balance is also know as the permanent fund balance, the acrual of gifts received.
The “Available to Spend” or ATS amount for the Endowed Funds are calculated at the end of each fiscal/calendar year using the current Spending Policy percentage, based on a trailing 12-quarter average fund balance. As the total Fund balance (asset value) of your Fund grows, so to will the amount available to spend on grants increase.
- The 12-quarter average trailing Fund balance at of 31 December is $114,456.
- The principal or permanent balance is $75,483 (the sum of the establishing gift and all additional gifts made).
- Apply the current SP rule of 3.7% to the total Fund balance; this equals $4,235 (rounded) as the potential ATS amount.
- Subtract the $4,235 from the Fund balance of $114,456; this leaves a remaining balance of $110,221.
- Because $110,221 is greater than $75,483 (the permanent balance) the principal will not be invaded.
- The actual ATS amount for the upcoming calendar year, and from which one or more grants may be made is $4,232.
For Non-Endowed Funds: There is no limit on the amount of money that may be granted during a fiscal/calendar year. The amount available to spend depends on your current Fund value (balance), including gifts received but not yet posted. As long as current year Community Development fees (administrative fees) have been paid in full, (as per each Fund Agreement), one or more grants may be recommended for disbursement at any time during the year.
SCF routinely provides information to our fundholders about community needs. This includes referencing new material posted on our website, letters to all donors during the year summarizing requests we have received for grants, and invitations to meetings and workshops that we conduct and facilitate.