To be approved in advance, a foundation’s grant procedure must provide for proper follow-up by the foundation to determine whether grantees have performed the activities that the grants are intended to finance and have not diverted grant funds away from the original purposes of the grant. A procedure meets this requirement if: Periodic progress reports are made to the foundation, at least once a year, to determine whether grantees have performed the activities the grants are intended to finance, The foundation investigates and takes corrective action when progress reports are not provided or there are other indications that grants are not being used as intended, and The foundation keeps records relating to all grants to individuals, including: information obtained to evaluate potential grantees, identification of grantees, including any relationship of the grantee to the foundation that makes the grantee a disqualified person, amount and purpose of each grant, and follow-up information, including required annual reports and investigation of jeopardized grants. Requests for approval of grant-making procedures should be sent to EO Determinations, using Form 8940, Request for Miscellaneous Determination. See the Instructions to Form 8940 PDF for more information. Additional information Grant defined Return to Life Cycle of a Private Foundation
