I am seeking foundation funding for a non profit organization that does not have its own 501c3 but rather operates under the 501c3 of a supporting agency that is listed as 509a3.
I was told by a foundation that this organization would not be eligible for funding as the foundation requires that grantees have a 501c3 in their own names. Some foundations indicate that they will not fund a pass through payer, but the foundation in question did not indicate that on its website. The information came in response to my questioning the eligibility.
How common is this practice? Until now I assumed that if there was no limitation stated in the guidelines, then the organization is eligible. Do I need to inquire about this issue before applying to every foundation? Is it necessary to include an explanation of the tax status in each letter of inquiry or application? I would rather not apply if the organization is not eligible.
