Managing Grant Funds
The Foundation's award letter specifies the terms of the grant, including the use of grant funds, reporting schedule, and the need to adhere to Foundation grantmaking policies.
All grant funds should be managed prudently and should be used for the purposes set forth in the award letter and approved proposal. The Foundation considers interest and investment income earned on grants to be part and parcel of the award. Grantees will set forth in their grant proposals their institutional policies for investing grant funds, including their investment strategy and methods for calculating and allocating interest and investment income to the grant. Grantees are expected to invest grant funds according to the terms set forth in the Foundation's award letter.
Organizations awarded endowment grants must also adhere to their state's Uniform Prudent Management of Institutional Funds Act (UPMIFA) statute in the investment, management, and spending of such grant funds. UPMIFA states that, subject to the intent of the donor, an organization awarded endowment funds may expend or accumulate as much of the endowment fund as the organization determines is prudent for the uses, benefits, purposes, and duration for which the endowment fund is established. An organization must receive the written approval of the Foundation if it wishes to modify or release a restriction on the management, investment, or purpose of an endowment grant. The Foundation rarely approves the spending of endowment principal below its historic dollar value.
Grant funds must only be used for the purposes, over the timeframe, and in the manner set forth in the award letter and approved proposal.
Awarded grant funds may not be expended on project costs incurred prior to the grant start date or, without the Foundation's prior written approval, after the grant end date. Grant funds cannot be used as collateral, to offset other financial obligations (including interest payments on lines of credit, and securing or servicing debt), nor to meet cash-flow or general operating expenses that are unrelated to the purpose of the grant proposal as defined in the grant award letter. Grantees are also expected to maintain controls to see that use of grant funds complies with the rules and guidance promulgated by the United States Office of Foreign Assets Control.
Foundation grants may involve work undertaken by collaborating institutions. In such cases, the Foundation awards grant funds to a single grantee, who is responsible under the terms of the award for reporting on the activities and expenditures of the collaborating organizations.
The Foundation requires timely and informative interim and final grant reporting. Grantees should consult the Foundation's grant reporting guidelines when preparing narrative and financial reports. Narrative and financial reports should be submitted together on or before the due dates specified in the Foundation's award letter. The Foundation may suspend grant activities and require the return of funds for delinquent or unsatisfactory reporting, and will consider reporting history in the awarding of future grants.
NARRATIVE AND FINANCIAL REPORTINGNarrative reports should describe the activities undertaken and the use of grant funds, and evaluate the progress made toward achieving the purposes of the grant during the reporting period.
Financial reports should be specific to the grant and include interest earned. If an organization has multiple grants from the Foundation, each grant must be separately reported. Grantees are required to use the same budget categories used in the grant proposal making it possible for line-by-line comparison of the approved budget and actual expenditures. Grantees awarded endowment funds should report using the Foundation's "Endowment Financial Report" template.
REPORTING ON INTEREST AND INCOMEFor each reporting period, grantees should give an account of how they spent or allocated earned investment income within the approved budget categories, or provide a written explanation if no income was earned on awarded funds. For collaborative or multi-institutional grants, the grant report should also include any accounting by each of the partner institutions of income earned on any unspent grant funds held at their institutions.
RECORD KEEPINGGrantees are required to retain accounting records, detailing all receipts and expenditures, for a minimum of three years following submission of the final grant report. Organizations receiving expenditure responsibility grants are required to keep records for four years. The Foundation reserves the right to conduct on- and offsite audits of records related to the use of grant funds. In cases where grantee spending is not consistent with the Foundation's award, the Foundation reserves the right to request the return of awarded funds, disallow expenditures, or take other remedial actions.