guidestar can "verify" a non 501c3 org
Orgs can pass charity check with green pop up “charity status verified” when they are not a true 501c3. The table of info presented is not clear which field provides true 501c3 status
Release 9/6/23:
Charity Check: Updated the integration to the latest version of Guidestar powered by Candid. The charity check log will return all of the details found in the organization’s Guidestar profile. This can be found in the Grantee Details tab. You can process the Charity Check or review the Log.
Grants: Enhanced the grant charity check process. The charity check first checks a grantee’s IRS Pub78 status. It will deny grantees whose Pub78 check is false (i.e. 501(C)4 organizations). If they pass the Pub78 check, but do not return 501(c)(3) Public Charity in their subsection description, they will also not pass charity check. This enhancement requires a manual override to identify grantees that possibly need further due diligence when not passing based on the subsection description.
This additional due diligence step was enabled in all sites. There is an option to disable this additional charity check within Grants<Settings-Disable Charity Check with Additional Due Diligence. If the additional charity check is disabled, the charity check will pass grantees based on their Pub78 status only.
Permissions: Added a new Grantee Permission; Manual Charity Review. This will give the user the permission to manually override the charity check during grants processing. This permission was enabled for Users in the Admin group
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Megan Conn commented
Yes pls!
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Michelle Schneider commented
We would also be interested if CSuite could pull down other pieces of information from Candid such as NTEE codes that we could copy into the philanthropic interest areas.
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Rachel commented
Yes, we agree. What I've been told by those that process our grants is that it's easy to run a Charity Check in CSuite, but it's harder to identify those we can't grant to, such as private non-operating foundations, as mentioned by others in these comments. Can certain fields be more prominent perhaps in the giant table of results? As I understand it, these fields also need to be manually examined carefully for each grantee as part of our due diligence: Foundation_509a_status, Foundation_code_description, Foundation_type_description, and Organization_type_1.
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Dana commented
Hello! It would be nice for the system to flag if an organization is a Private Non-Operating Foundation and any other type that would pass the Pub 78 as "True".
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Dana commented
Yes, it would be nice for the system to flag 501 c3 Private Non-Operating organizations as well.
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Corey Getchell commented
I am working with a community foundation that had an American Legion chapter that passed with a 501c19 status. Council on Foundatios advised that expenditure reporting for these organizations are required for DAF grants.
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Miriam Leal commented
A 501(c)(4) organization passed the system-generated Guidestar check but they are not a true 501c3. This particular instance was in December 2021.