GRANT APPLICATION PROCEDURES
Proposal letters are considered appropriate applications for grants. Submissions should contain the purpose and background of the organization.
Applicants should submit as much detail as necessary to explain and justify the need for funding. Particular attention will be paid to the reasonableness of administrative expense ratios and fund raising costs. Organizations must be willing to have results of a grant audited.
The following information, indexed on a cover sheet, must accompany the proposal:
- Amount requested
- Specific purpose of funding
- Specific location (s) of project/service
- Details of other sources and amounts of funding, including list of foundations
- List of current board members
- Budgetary data (for the project, if the request is for a specific project)
- Proof of federal (not state) tax-exempt status (i. e., current 501 ( c ) (3) letter) **
- Federal tax identification number
- Most recent audited financial statements
Grant requests must be mailed or emailed to the following address:
Mr. Gordon LaBounty, Executive Director
P.O. Box 897
Dundee, Illinois 60118
February 1st is the deadline for applications to be considered in that year’s budget. In order for pertinent information to be considered current, we suggest that applications be sent between December 1st and February 1st.
Applicants will be notified of grant decisions usually after July 1, following the annual meeting of the Foundation Board of Directors.
- The Foundation’s areas of interest involve the fields of higher education, particularly in scientific and environmental fields, educational programs at all levels, and human services. Occasionally, grants are made in other areas such as health, medical research and cultural. Grants generally are limited to organizations located in the greater Chicago area.
- Grants may be made for general operating support, specific projects, and occasionally, capital programs. Grants will be made on a single year basis. Grants made for specific projects require grantees to render accountability by means of periodic reports.
- The Foundation will make annual grants on a recurring basis to sustain operations of some organizations. However, long-term dependency situations are not considered desirable.
- Grant requests are suggested to be within a range of $2,500 (or less) to $15,000. Grant recipients and amounts will be determined by several criteria. Naturally, availability of funds is a key factor.
- The Foundation will occasionally make large grants ($50,000 or more) to support unusually promising efforts in any of its areas of interest. Innovative research, special education, and/or other activities will be considered if the Foundation’s support would assist an effort or a project in making a significant impact benefiting mankind.
- The use of the matching grant, or “challenge” approach is encouraged where feasible.
- The Foundation will support only organizations qualified as tax-exempt, (i.e., 501© (3) or 509 (a) (1) or (a) (2) organizations), under the regulations of the United States Internal Revenue Service. **
- The Foundation does not make grants directly to individuals.
- The Foundation does not make grants for purposes that are strictly religious in nature.
- The Foundation does not make grants for specific events, such as seminars, conferences, etc.
- The Foundation does not normally support theater groups.
- The Foundation does not normally support public or private high schools.
** Effective August 17, 2006, the Pension Protection Act of 2006 (H.R. 4) became law.
Among other things, this law imposes certain obligations on private foundations (such as McGraw Foundation) considering grants to “Supporting Organizations.”
If your organization is a “Public Charity” under code section 501 (c) (3), it will have received an additional designation of 509 (a) (1), 509 (a) (2), or 509 (a) (3). We request that any grant application made to McGraw Foundation include proof of the appropriate Sec. 509 designation. This Sec. 509 designation is usually stated on the same federal Internal Revenue Service letter indicating your 501 (c) (3) status.
509 (a) (3) denotes a supporting organization affected by the new law. Before McGraw Foundation can proceed on an application from a 501 ( c ) (3) organization with a 509 (a) (3) designation, more information will be needed. If you have any doubt as to the nature and category of your organization’s tax-exempt status, and current documentation thereof, please consult your professional tax advisor.