Legacy Foundation Grant Guidelines

1. The broad purpose of the Legacy Foundation (herein referred to as “the Foundation”) is to build a culture of philanthropy across generations that will positively transform Lake County.
2. The Foundation will strive to maintain both a proactive focus and an ability to respond to creative ideas from grant seekers.
3. Grant funding will encourage programs that enhance cooperation and collaboration among organizations within our community.
4. Only one application per qualified, tax-exempt organization will be accepted per grant cycle. If an organization chooses to act as a fiscal sponsor for another organization applying for a grant, the fiscal sponsor may not also apply for a grant on its own behalf during the same grant cycle.
5. Grantees that are unable to spend or encumber the entire amount awarded or complete a majority of the funded activity within the funded grant period are required to either refund any remaining balance with an explanation or submit a grant period extension request. Extensions must be requested before the current grant period ends. Failure to provide a timely extension request could result in forfeiture of all remaining funds, at the Foundation’s sole discretion. Timely filed extension requests shall be approved or denied in writing by the Foundation in its sole discretion. Upon the Foundation’s receipt of an extension request, grantees will be notified of our decision within 10-14 business days. If approved, all funds must be expended within the time period approved and a final report filed with the Foundation in writing. If denied, all remaining funds must be returned within 30 days of notification to the Foundation.
6. In reviewing grant applications, the Foundation will give careful consideration to:
   • The potential impact of the request and the number of people who will benefit;
   • The innovative and experimental nature of the request;
   • Local volunteer and other support for the project;
   • The commitment of the requesting organization’s governing board;
   • The degree to which the request works with or complements the work or programs of other community organizations in an attempt to eliminate duplication of services;
   • The organization’s fiscal responsibility and management qualifications;
   • The possibility of using the grant as seed money for matching funds from other sources;
   • The ability of the organization to obtain any additional funding that may be needed to complete the project; and
   • The organization’s ability to provide ongoing funding after the grant has expired.
7. The Legacy Foundation does not typically fund:
   • Annual appeals, endowment funds, membership contributions or fundraising events
   • Existing obligations, loans or debt retirement
   • Long-term operating support
   • Multi-year grants or repeat funding for the same project or program
   • Medical, scientific or academic research
   • Schools, universities and private academies unless there is a significant opportunity for community use or collaboration
   • Projects aimed at promoting a particular religion or construction projects of churches and other religious institutions
   • Political campaigns, advocacy or direct lobbying efforts by 501(c)(3) organizations
   • Services commonly regarded as the responsibility of governmental agencies, such as fire and police protection
   • Travel for individuals, bands, sports teams, classes and similar groups

Grants are typically made for activity undertaken in one year. Grant recipients may apply in future years for funding but are not given priority or guaranteed additional funding. Legacy Foundation encourages organizations to diversify their funding sources and to seek gifts from individuals, corporations, and foundations. You may only submit one application per type of grant per grant cycle. If awarded, organizations may be awarded one grant from each type of grant we offer in any 12 month period. Further, even if the twelve month period passes, you may not apply for the same type of grant if you have not submitted a final grant report from the last grant received.

• Example 1: If you receive a Transform Lake County grant, you cannot receive another Transform Lake County grant for up to 12 months after the first grant was submitted. In addition to waiting 12 months, you must also complete all conditions stated in your grant agreement such as scheduling a site visit and completing a grant report of your program activities and financial expenditures. However, if the organization is current and compliant with their grant activities, they may apply for an additional grant such as a Sponsorship Grant.

Please note: if your organization does not comply with grant guidelines, your organization may jeopardize the potential for future funding.

Grantees must be in compliance with all state and federal guidelines and adhere to best practices for non-profit organizations. As such, organizations must comply with the following prequalifying questions in order to be eligible to apply:

• Does the board of directors or governing body meet at least four times per year with a majority in attendance?
• Is the board of directors or governing body comprised of a minimum of 5 voting officers, including a President, Secretary, and Treasurer?
• Does the board of directors or governing body approve an annual organizational budget?
• Does the board of directors or governing body receive and review, at least quarterly, financial reports that detail approved budget to actual revenue/expenditures?
• Does the treasurer (or someone not involved in transactions) review and sign off on monthly expenditures?
• Does the board or governing body have a conflict of interest policy?
• Is the organization in compliance with all requirements of the IRS and the Indiana Secretary of State?
• My organization can answer “Yes” to one of the following statements:
  • We are a church or other house of worship
  • We file a Form 990, 990 EZ, or a 990 N
  • We file an audited financial statement
  • We have been in existence less than two years and have not yet had to file

Application Review Process

• Staff reviews applications and provides preliminary recommendations
• Staff recommendations are presented to the Grant Committee for review and funding decisions (Transform Lake County)
• Staff provides recommendations to the Knight Foundation for review and approval
• The Board of Directors reviews and votes on all final funding decisions
• Funding decisions are communicated to the applicants via e-mail

The following are reviewed to determine the strength of the request and/or the potential fit for the particular funding source.

• Need
• Capacity of Applicant Organization
• Impact of Proposed Project
• Cost
• Investment of Funds
• Partnership and collaborations

Organizations that are declined can reapply for funding during the next grant cycle. We suggest that you speak with a Legacy Foundation employee before reapplying.

Personal solicitations to grants committee members or Legacy Foundation Board of Directors are strongly discouraged and may result in the disqualification of the application. All board members and grants committee members are required to declare any personal interest in any grant application. This declaration eliminates their participation in voting on the grant application and will be recorded in the minutes as an abstention. Grants committee members may not assist applicants in any way with the preparation or direction of their submissions.

The Legacy Foundation Board of Directors has the final authority and responsibility for approving all grant applications. Legacy Foundation staff, grants committee, or Board members are not authorized to release any information on the status of a grant application prior to final board approval.

Monitoring Grants

To ensure the appropriate use of our grant funds and compliance with state and federal regulations, the foundation has procedures for making and monitoring all grants. These include the following:

Grant Review: All grant applications are reviewed by staff and the Grants Committee. Recommendations are then presented to the Board of Directors and they determine their actions based on majority vote.

Signed Agreement: Failure by a grantee to sign the Statement of Conditions (SOC) or comply with any provision of the content may result in forfeiture of the grant award. The signed SOC must be returned within 30 days of notification of award, unless otherwise communicated.

One or More Site Visits: Program staff will visit the grantee during the term of the grant. Site visits usually occur 6 months after the grant notification, however, the organization is encouraged to reach out to Legacy Foundation staff to schedule a site visit during the time project activities are occurring.

Financial and Narrative Reports: At the close of the grant term, grantees are required to submit a final report reviewed by program staff for compliance with the grant agreement. Final reports are due exactly 13 months from the date of the signed SOC (1 month after the close of the 12 month grant period). Any grantee with overdue reports will not be eligible for future grants until in compliance and may be prohibited from applying for any funding for the six month period beginning the day after the overdue report was submitted. Reports should be submitted online through our website.

Notification of Award
Awards are communicated via email and typically occur six weeks following the grant's due date. Details on accepting the award will be listed in the email.

Obtaining Payment
Payment is provided once all assigned Follow-Up forms have been completed in the portal and approved by Legacy Foundation. Whenever possible, Legacy makes payments via ACH.

Some payments may be contingent on the attainment of certain goals rather than a specific date. If the payment is based on reaching a certain goal or other stipulations, proof of meeting those requirements must be submitted in writing to Legacy Foundation staff prior to payment processing.

Documentation of Matching Funds
The Board of Directors of the Legacy Foundation may impose a matching requirement so that you can use the Foundation’s grant as leverage for new gifts or increased gifts from donors. Therefore, matching funds must be new money raised and received specifically for the granted project during the time period outlined in your grant letter.

For all grants requiring a match, qualifying matching funds must consist of irrevocable contributions of cash or equivalents (i.e. stocks or bonds) or property.

Reporting Your Match
Your report indicating you have raised your required matching funds should be uploaded to the Follow-Up form "Documenting Your Match" in the grant portal. You should attach firm documentation of the matching funds such as copies of checks from donors or grant letters from foundations, government agencies and corporations. Gifts under $250 may be listed on a spreadsheet indicating the name of the donor, amount received during the matching period, nature of the contribution (cash, planned gift, in-kind) and date of gift.

Valuation of In-Kind Match
If your grant letter allows an in-kind match, please follow these accounting guidelines:

• Donated materials should be reported at their fair market value if you have an objective, measurable basis for assigning value. The donor will usually assign a value of the gift.
• Donated services should be reported if: they are a normal part of the project and would be otherwise performed by paid personnel (i.e. legal, accounting, investing, tax services); the grantee exercises control over the employment and the duties of the donor; and there is a measurable basis for assigning a value to the service being donated.
• The following cannot be claimed as in-kind services: Direct services designed to be provided by volunteers, periodic volunteer services for fund raising and time spent by board members and board committees in carrying out governance activities.

For further guidelines on valuation, please refer to
http://www.irs.gov/pub/irs-pdf/p526.pdf
http://www.irs.gov/pub/irs-pdf/p1771.pdf

Purchasing and Procurement

Legacy Foundation encourages procurement of professional services through competitive negotiation to ensure quality work and best pricing. Unless otherwise noted in your award announcement or grant agreement, all real estate, equipment and materials purchased with Foundation funds become the grantee’s permanent property. If the grantee nonprofit is legally dissolved, its assets should be transferred to another nonprofit with a similar mission, in accordance with IRS regulations. For further Indiana guidelines, please refer to http://www.in.gov/legislative/ic/code/title30/ar4/ch3.html#IC30-4-3-27.

Modification

Modifications to the funded project’s intent, the grant period, and budget amounts must be approved by Legacy Foundation. Significant variations may require the Foundation Board’s approval. Approval of modifications should be requested in writing. Modifications under 10% of the total grant amount do not require Foundation approval.

Record Keeping and Accounting

You are required to keep financial records with respect to a grant, along with any reports submitted to the Foundation, for at least two years following the termination of the grant.