The Pension Protection Act (PPA) of 2006 imposed new requirements on grants to supporting organizations from donor-advised funds.
Generally, a supporting organization is a 501(c)(3) public charity that operates to support another related public charity. Common examples include alumni associations, hospital foundations and “Friends of” organizations.
In cases where a grant is recommended to a supporting organization, the Jewish Communal Fund must now obtain additional information as part of our due diligence before approving the grant. Under the PPA, we are not permitted to make grants to an organization that is a non-functionally integrated type III supporting organization. If an organization is a type I or type II supporting organization, the donor will be required to sign an additional certification and the grantee will be asked to provide an opinion of counsel.
Please be advised that grants to all supporting organizations necessitate an increase in research and due diligence in order to ensure compliance under the PPA and will increase the processing time.
If you have questions about supporting organizations, please call our Senior Director of Grants Administration, Melanie Marchfeld, at 212-752-8277, ext. 15.