D.12. Recordkeeping Requirements of the Grantors

(1) In addition to filing the annual report of its grant-making activities, grantor private

foundations are required to retain records with respect to all their expenditure responsibility grants and to make them available to the IRS on request. The required records must include a copy of—

a. Each such grant agreement entered into during the taxable year;

b. Each report received from the grantee organization during the taxable year;

and

c. The results of independent audits or investigations that have been conducted

during the year with respect to its "expenditure responsibility" grants. See Treas. Reg. 53.4945-5(d)(3).