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K-State Research and Extension
123 Umberger Hall
Manhattan, KS 66506-3401

March 14, 2023

Accepting Grants for Local Unit Programming

Submitted by Chris Onstad

Gifts and Grants can be received into local extension unit accounts as a non-appropriated fund receipt. Donations are tax deductible as the local extension unit is recognized by the IRS as a 170 (c) (1) governmental entity.

Some granting agencies and organizations require the recipient organization to be a 501 (c) (3) organization. The Kansas 4-H Foundation is willing to serve as the recipient organization with an account for the local unit, when the funds will be utilized for 4-H programming.

Local community foundations are also an alternative for accepting larger donations or grants that require a 501 (c) (3) status. The purpose of a community foundation is to support local communities by collecting dollars on behalf of local entities for the betterment of the community. In addition to collecting endowed funds on behalf of local organizations, a local community foundation will often act as a fiscal agent for a local entity such as Extension or 4-H, as long as the group has an established fund with the foundation. An Extension or 4-H fund with a local community foundation may be advantageous for several reasons:

• Funds are publicized so the community is aware of the ability to make donations to Extension or 4-H.

• Community foundations often take the leadership for organizing community-wide fund raisers.

• The community foundation is responsible for management of the funds and associated IRS reporting.

Check with the community foundation management to learn about the types of funds available, deposit requirements and management fees.