What are the most common reasons Grassroots Grants proposals are not eligible to apply for Grassroots Grants?

There are three common reasons::

1) The applicant does not have required tax-exempt/public charity status. Only 501(c)(3) organizations that are not private foundations, or that are publicly supported, are eligible to apply for Grassroots Grants. Other 501(c) organizations [e.g., 501(c)(4) or 501(c)(6)] are NOT eligible for Grassroots Grants.
 
501(c)(3) status is granted by the Internal Revenue Service. It is not enough that the organization has no money or does not make a profit or that it is registered with the State Corporate Division as Nonprofit or it has submitted an application to the IRS but has not yet received a determination letter. In addition to 501(c)(3), the organization must be determined by the IRS to be a public charity and not a private foundation under 509(a). [In 1969, the U.S. Congress required the IRS to differentiate between public charities and private foundations, so the IRS added section 509(a) that established conditions that must be met in order to be recognized as a public charity.]
 
MMT requires that Grassroots Grant applicants have both 501(c)(3) and 509(a) rulings. Usually reference to both sections is made in the same letter. When an organization first applies for tax-exempt status from the IRS, the agency rules on the tax-exempt status but makes only a preliminary determination about whether it is a public charity. Within 90 days after the advance ruling period ends, the organization must submit evidence the IRS uses to make a final determination. Organizations may apply for Grassroots Grants within their advance ruling period, but after that period has ended a final determination letter must be submitted with the proposal. (Organizations that apply within 90 days of the end of the advance ruling period must demonstrate to MMT that it has met the IRS requirements for the final determination.)
 
In some cases, organizations (such as government entities) that have tax exemption because of their publicly funded status are also eligible to apply for Grassroots Grants.
 
2) There are contingencies. Because the Grassroots Grants program is intended to fund projects that can be carried out soon after funds are awarded, applicants that still need to raise additional funds or resolve other conditions should not submit a Grassroots Grants proposal. With the exception of capital and operating support requests, if additional funds are needed, those must already be in hand or pledged at the time the Grassroots Grant proposal is submitted.
3) The proposal is submitted too late for trustee consideration before the project will occur.