How To Get A Grant – Who is REQUIRED to Pay out?
http://qtbizsolutions.com/howtogetagrant – How to Get A Grant
Hi Tina Williams here from qtbizsolutions.com and chances are you found this video because you were searching for “How To Get A Grant”
I asked myself that very same question a while back and wondered…Where does grant money come from? Why is everyone always talking about getting free money. So I did some research and here is what I found.
To answer the question of [How To] get a grant… I am going to focus on private foundations.
There are other places to get grants outside of private foundations but I found that Private Foundations have a special reason to give grants.
Did you know that private foundations HAVE TO distribute a percentage of their assets annually?
You can go to the IRS website to see what private foundations are required to distribute.
As you can see here the IRS has a tax on foundations that fail to distribute their income
Private foundations are required to distribute a minimum of 5% of their assets annually and as you can see here…failure to make timely distributions of income at the required level will give rise to excise taxes and if the IRS found that their failure to distribute was flagrant or willful they would also get additional penalties and taxes , including a possible termination tax.
The Council on Foundations defines the 5% percent minimum payout. What is the 5% minimum payout? The purpose behind the minimum payout requirement is to prevent foundations from simply receiving gifts, investing the assets and never spending any funds on charitable purposes.
So you see…Private Foundations are required to distribute 5% of their assets annually to charitable causes.
So to answer the question of How To Get A Grant? I would say…open a nonprofit, get your 501c3 and apply to a private foundation to get your grant.
If you found this video helpful please like the video and leave a comment for me
And if you would like to get some FREE TRAINING on how to open your nonprofit and get grants…you can go to qtbizsolutions.com/howtogetagrant and you can sign up for for free training on how to open your nonprofit and get your nonprofit funded.
Again, please like the video, leave a comment and go to qtbizsolutions.com/howtogetagrant and get that free training
Thank you for coming again to my channel