A community foundation performs due diligence to ensure that grants will be used for charitable purposes.
Compliance with Internal Revenue Service regulations. As well, donors and the community consider a grant from a community foundation as assurance of the integrity of the grant recipient.
- Donors are assured that grants will be used for the purposes intended and comply with applicable laws and regulations.
- A grant received from the community foundation is seen as a seal of approval by the grantee and other grantmakers.
- The effectiveness of foundation grants increases.