Grantmaking to Religious Organizations Guidance

This guide addresses the considerations and requirements for private foundations making grants to religious organizations, such as churches and temples. It outlines the necessary steps for verifying the public charity status of potential grantees, emphasizing the importance of using the IRS Tax Exempt Organization Search site for accurate verification. The document details that places of worship are automatically considered tax-exempt and may not possess an IRS determination letter. Foundations must assess whether these organizations meet the IRS criteria for charitable status, which includes being organized for religious or educational purposes and not benefiting private individuals. The guide also discusses the reporting requirements on Form 990-PF, where places of worship should be listed as public charities. It concludes by reiterating that while grantmaking to places of worship is permissible, it necessitates careful documentation of the grantee's status to ensure compliance with federal tax laws.