Sioux Falls Area Community Foundation

Donor-Advised Grant Recommendation Guidelines

Thank you for your philanthropy to the Sioux Falls area! As an advisor, you may recommend grants from the Sioux Falls Area Community Foundation fund you or your predecessors established. Please be aware, however, that your recommendations are advisory. Federal tax law does not permit donors to retain control over assets previously given to charity. To maintain its own tax-exempt status, SFACF must review and approve or decline all donor-advised grant recommendations.

In general, to be approved by SFACF:

grants must be used for exclusively charitable purposes.
recipient organizations must be recognized as charities, most often under Section 501(c)(3) of the federal tax law.
grants should benefit communities within a 75-mile radius of Sioux Falls, though recommendations for grants outside this area are also considered.

SFACF will decline recommendations for grants prohibited by federal law. Distributions will not be made if they:

are directed to a purpose that is not entirely charitable.
benefit or reimburse a fund advisor or family member. Benefits include meals, event tickets, memberships, etc. SFACF will make grants to charities in lieu of these benefits when it can assure that the grant will be used exclusively for charitable purposes.
are used to satisfy a legally binding pledge.
benefit a specific individual.
involve games of chance, such as raffles or lotteries.

Grant Recommendation Process

Please call us if you need assistance with grant recommendations. We'll be happy to check on an organization's tax status for you and may have suggestions on worthy projects that need charitable support.
You may make a recommendation at any time and can start the process by phone. You will need to submit a signed Donor-Advised Grant Recommendation form to document your request.
Grant recommendations should be made in the amount of $100 or more.
Grant recommendations are reviewed and grant checks issued every two weeks. The review process can take up to several weeks, however, if SFACF needs to verify the charitable status or nature of an organization or a project. And, because they require formal presentation to the Board of Directors, grants of $25,000 or more to one organization or a total of $50,000 or more to several organizations at any one time may need to be coordinated with bi-monthly board meetings.
If your recommendation is approved, a check will be sent directly to the organization, and you will receive a confirmation letter.
In limited circumstances, you may be allowed to personally deliver a grant check to the organization, as long as it is not an educational institution.

I certify that I have read and accept the SFACF Grant Recommendation Guidelines.

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