The Gene Haas Foundation


Tax-Exempt Status: You are exempt under Internal Revenue Code Section 501(c)(3) and currently are classified as a public charity pursuant to Internal Revenue Code Section 509(a)(1), (2) or (3) (an “Exempt Public Charity”).

To be a school to which the Foundation can make grants without exercising expenditure responsibility, the school must be “an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly enrolled student body of pupils or students in attendance at the place where its educational activities are regularly carried on.”  (I.R.C. § 170(b)(1)(A)(ii)).  A school is a “public charity” for this purpose.  (Treas. Reg. § 1.509(a)-2(a).)  This is a type of organization to which a private foundation can make grants without incurring a penalty tax or being required to exercise expenditure responsibility for those grants.  (I.R.C. § 4945(d)(4)(A); Treas. Reg. § 53.4945-5(a)(1), (4)(i); see also M.I. Sanders and C. Roady, Private Foundations – Taxable Expenditures (Sec. 4945), (bna) Tax Mgmt. Port. No. 474 at VIII.A.1.a.)  Consequently, on the assumptions stated above, the Foundation can make grants to public schools that meet the requirements set forth above. What public schools do not have is a determination letter from the IRS attesting to their status as a 501(c)(3) organization.  However, to receive grant money from a private foundation like the Foundation (and to receive deductible contributions from individual taxpayers), the school does not need to be a Section 501(c)(3) organization.   It only needs to meet the definition of a school quoted above.  It can be an instrumentality of a state (such as a school district).  It does not need to be a nonprofit corporation or a trust.  However, if the school is not an instrumentality of a state, it generally must be a 501(c)(3) organization.  (I.R.C. § 170(c).

(a)  Grant Purpose and Expenditure of Funds: You will utilize the grant proceeds to fund programs as long as it is consistent with the tax-exempt status described above and with the mission of your organization. You will not use any of the grant, or the interest or income thereon, to influence any legislation or the outcome of any election, to conduct a voter registration drive or to satisfy a charitable pledge or obligation of any person or organization.

(b)  Return of Grant Funds: You will return any funds not expended within 2 years for the charitable purposes outlined above under “Grant Purpose”. You also will return the enclosed donation if your organization is no longer recognized by the Internal Revenue Service as an Exempt Public Charity or would lose its status as a public charity (as per Internal Revenue Code Section 170(b)(1)(A)(vi)) as a result of this donation. Returned funds will be sent to the Foundation at 2800 Sturgis Road, Oxnard, CA 93030.

(c)   Other Terms: These Grant Terms and Conditions control over and supersede any conflicting terms of any document that you may have received concerning the conditions under which this grant is made and are in addition to all other terms and conditions the Foundation may have provided. This grant is subject to these Terms and Conditions and by cashing the grant check, you are indicating that you agree to its terms.