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How to Receive Grants as Non US Ministry Organization
by William F. High
We receive many inquiries from organizations that are not based in the United States. Many of these organizations are seeking grants for their particular ministry. This article provides a short synopsis on how a organization outside the United States can receive grant funding.
First, do you have US tax exempt status? Generally, in order to receive grants from private foundations, you must be incorporated in the United States and be approved as a tax exempt charity. This is called a 501(c)(3) public charity. (Tax exempt means that an individual or a private foundation may contribute to this organization and receive an income tax deduction as a result of making this contribution.) If you are an existing United States 501(c)(3), then, you may proceed with grant applications to the private foundations listed in the www.christianfoundationgrants.com database. Apply now.
Second, if you are not a US tax exempt charity, then consider registering. To become registered as a US tax exempt charity, you must become a corporation. This means filing articles of incorporation, having a set of bylaws and completing Form 1023, which can be found at the Internal Revenue Service (“IRS”) website. Once you complete the form, then the IRS will send an acknowledgement and often will ask a series of questions before they will issue approval. In order to be registered as a tax exempt charity, it is advisable to consult with an attorney specializing in this kind of work. You may also consult the IRS website for more information about establishing this status.
Third, if you do not wish to register, then consider partnering with a US based tax exempt charity. Some foreign charities, instead of registering for tax exempt status, will seek out and enter into formal partnerships with US based charities. For instance, there may a US based charity working in a particular country. Many US based charities have international ministry activity. Some non US charities will seek out these US based charities and partner with them in the ministry work.
Example: Charity A is based in India. It is not a US tax exempt charity. Charity A desires to receive grant funding from US based private foundations. Charity B is a US based tax exempt charity. Charity B carries out ministry activity in India similar to Charity A. Charity A approaches Charity B and enters into an agreement where Charity A will help Charity B in its ministry efforts. Charity A applies for a grant and receives grant funding through Charity B’s US tax exempt status.
Fourth, consider partnering with a US based church. This example is similar to the example above. However, instead of partnering with a US based tax exempt charity, a foreign charity may consider partnering with a US based church. In the United States, a church has tax exempt status even without any formal filing with the IRS. Many churches have outreach activities in foreign countries.
Example: Charity A is based in India. It is not a US tax exempt charity. Charity A desires to receive grant funding from US based private foundations. Charity B is a church in the United States. Charity B carries out ministry activity in India similar to Charity A. Charity A approaches Charity B and enters into an agreement where Charity A will help Charity B in its ministry efforts. Charity A applies for a grant and receives grant funding through Charity B’s church tax exempt status.
Fifth, if you have tax exempt status, or a partnership with a US charity or church, then consider retaining a grantwriter. Once you have the proper mechanism (tax exempt status or a partnership with a US tax exempt organization) in place to receive a grant, keep in mind that receiving a grant from a Christian foundation is not as simple as being a Christian organization. Generally, private foundations give grants to organizations with whom they are familiar. They also give grants according to a particular area of interest. Some foundations have a particular interest in international work. Some do not. Don’t apply to those who don’t have an interest in international work. In any event, it is often beneficial to retain a grantwriter who is familiar with the language and process of particular foundations.
Upon subscribing to the www.christianfoundationgrants.com database, you’ll receive a free listing of grantwriters.
Sixth, consider other funding sources. Most ministry organizations look for funding from cash sources. However, there are many other funding sources. Some organizations will provide loans that will help organizations start businesses that can provide a source of funding. Another possible funding source is to approach corporations in your country. Some of these corporations may provide cash funding. Some may provide their excess inventory that can be sold to produce cash for the ministry. Look at www.iDonate.com or www.adtechsolutions.com for examples.
Seventh, remain persistent. Grant and ministry funding does not occur from a single attempt. Even with private foundations, some require multiple attempts and grant proposals. Engage people around you to brainstorm and seek creative funding solutions. They are available. After all, we have the mind of Christ, which is indeed a creative mind. Determine which foundations best suit your ministry interest. The www.christianfoundationgrants.com website provides the best listing of foundations across the country for this kind of information.
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