Monitoring Grants to US Charities
Introduction. The Form 990 gives charities that make grants to US organizations space to describe how those grants are monitored. Tzedakah, Inc. views those descriptions as, at most, of partial value. Only the method of monitoring is requested. More complete instructions would require a discussion of the findings of that monitoring.
The data provided by charities on the Forms 990 range from a clear description of monitoring activities through those that provide only a brief mention of monitoring methods to those that provide no information about monitoring at all. We provide examples below in the hope they assist you in evaluating the quality of information provided by charities you evaluate.
CONFERENCE ON JEWISH MATERIAL CLAIMS AGAINST GERMANY is an example of an organization that has instituted specific procedures to systematically monitor grants at the time they are awarded and throughout their lives.
Form 990 instructions regarding grant monitoring. In general terms, describe how the organization monitors its grants to ensure that such grants are used for proper purposes and aren’t otherwise diverted from the intended use. For example, the organization can describe the periodic reports required or field investigations conducted.
ONCE THE GRANTS ARE APPROVED, INSTITUTIONS RECEIVE AN OFFICIAL LETTER OF NOTIFICATION. THE GRANT LETTER INCLUDES THE ALLOCATION AMOUNT, PURPOSE OF THE GRANT AND ALL OTHER TERMS AND CONDITIONS OF IMPLEMENTATION. INSTITUTIONS MUST CONFIRM ACCEPTANCE OF THE GRANT TERMS AND ARE GENERALLY REQUIRED TO SUBMIT AN AMENDED BUDGET BEFORE THE GRANTS CAN BECOME OPERATIONAL. SOCIAL SERVICES PROGRAMS FOR ON-GOING SERVICES ARE REQUIRED TO REPORT QUARTERLY ON THE PROGRESS OF THE PROJECTS AND RESEARCH, EDUCATION AND DOCUMENTATION PROJECTS ARE REQUIRED TO SUBMIT SEMI-ANNUAL REPORTS. THE REPORTS INCLUDE A PROGRAMMATIC, FINANCIAL AND STATISTICAL REPORT(WHERE APPLICABLE). CAPITAL PROJECTS REPORT ACCORDING TO THE PROGRESS OF THE PROJECTS, AND SUCH REPORTING GENERALLY INCLUDE A STATEMENT FROM AUDITORS DETAILING EXPENDITURES OF THE PROJECTS TO DATE. THE PROGRESS OF EACH GRANT IS CLOSELY MONITORED BY THE CLAIMS CONFERENCE STAFF, WHICH IS RESPONSIBLE FOR REVIEWING ALL OF THE FINANCIAL AND PROGRAMMATIC ACTIVITIES TO ENSURE ACCOUNTABILITY AND CONFORMITY TO THE PROGRAM PLAN AND COMPLIANCE WITH REQUIREMENTS AND REGULATIONS. FUNDS ARE RELEASED AFTER THE REVIEW OF REPORTS, ALTHOUGH FUNDS MAY BE ADVANCED BASED UPON INSTITUTION NEED. ALL GRANTS OF $125,000 AND ABOVE ARE REQUIRED, UPON COMPLETION OF THE PROJECT, TO SUBMIT A SEPARATE AUDIT OR PROCEDURE WHICH INCLUDES AN AUDITOR’S CONFIRMATION OF THE AMOUNT RECEIVED FROM THE CLAIMS CONFERENCE, THE TOTAL AMOUNT EXPENDED AND THAT THE FUNDS WERE USED FOR THE PURPOSES FOR WHICH THEY WERE GRANTED.
JEWISH COMMUNITY FOUNDATION OF THE JEWISH FEDERATION COUNCIL OF GREATER LOS ANGELES. According to its response on form 990, the organization does not have any practices to monitor most grants it awards. It does, however, monitor multi-year grants which represent a relatively small portion of grants awarded.
Form 990 instructions regarding grant monitoring. In general terms, describe how the organization monitors its grants to ensure that such grants are used for proper purposes and aren’t otherwise diverted from the intended use. For example, the organization can describe the periodic reports required or field investigations conducted.
JEWISH FEDERATION OF SOUTH PALM BEACH COUNTY INC The organization provided no description of how grants awarded are monitored. The section of the Form 990 designated for a description grant monitoring merely mentions that grants were paid to the Jewish Federation of North America. The organization mentions grants under Schedule F, but it made no grants under that schedule. Elsewhere on the Form 990, the organization reports it did not maintain substantiation records of grants awarded. Form 990 instructions regarding grant monitoring. In general terms, describe how the organization monitors its grants to ensure that such grants are used for proper purposes and aren’t otherwise diverted from the intended use. For example, the organization can describe the periodic reports required or field investigations conducted. CHARLESTON JEWISH FEDERATION INC The organization leaves no description of how it monitors grants to others. Form 990 instructions regarding grant monitoring. In general terms, describe how the organization monitors its grants to ensure that such grants are used for proper purposes and aren’t otherwise diverted from the intended use. For example, the organization can describe the periodic reports required or field investigations conducted.
DESCRIPTION OF ORGANIZATION’S PROCEDURES FOR MONITORING USE OF GRANTS
THE MAJORITY OF GRANTS ISSUED BY THE FOUNDATION ARE FOR GENERAL OPERATIONS FOR THE PERIOD OF ONE YEAR.
WHEN THE FOUNDATION ISSUES A MULTI-YEAR GRANT FOR A SPECIFIED PURPOSE, A GRANT AGREEMENT IS PREPARED BETWEEN THE FOUNDATION AND THE GRANTEE DETAILING BENCHMARKS THAT MUST BE ACHIEVED BY THE GRANTEE. THE AGREEMENT IS MONITORED AND THE GRANTEE MUST SHOW FULFILLMENT OF BENCHMARKS WITH A WRITTEN REPORT.
JEWISH FEDERATION OF SOUTH PALM BEACH COUNTY REPORTS GRANTS ON SCHEDULE I TO THE JEWISH FEDERATIONS OF NORTH AMERICA (JFNA),WHICH IS A 501(C)(3) DOMESTIC U.S. CHARITY.
IN ADDITION, JFNA, AND ITS BENEFICIARY AGENCIES, UNITED ISRAEL APPEAL (UIA),A SUBSIDIARY OF JFNA, AND THE AMERICAN JEWISH JOINT DISTRIBUTION COMMITTEE (JDC) – BOTH 501(C)(3) ORGANIZATIONS – EACH FILE A SEPARATE FORM 990 AND DETAILED SCHEDULES F.
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