Choose Grant Recipients Wisely

How carefully does your nonprofit’s board choose grant recipients? If you don’t know, here is a wake-up call.

One Fund Boston, the 501(c)(3) established to assist victims and families affected by the Boston Marathon bombings, recently approved payment of $480,000 to an individual who is now charged with defrauding the fund. There’s good news for the organization though. First, the money was recovered in full. Second, The Boston Globe reports that Massachusetts Attorney General Martha Coakley believes One Fund exercised due diligence in selecting the fraudulent recipient.

Whether choosing grantee individuals or organizations, your nonprofit’s board should have a specific protocol in place and follow it. If your organization needs help establishing a procedure to follow contact us to help design or review your grant-making process.

NOTE: The information contained herein is not intended to be legal advice and the reader should know that no Attorney-Client relationship or privilege is formed by the posting or reading of this article which is also not intended to solicit business.

Casey Summar, Partner, The Law Firm for Non-Profits,1812 W Burbank Blvd, #7445, Burbank, CA 91506

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