D.6. Pre-grant Inquiry Requirement Section 4945(h)(1)

(1) Before a private foundation makes a grant to an organization subject to

expenditure responsibility, it should conduct a limited pre-grant inquiry to ensure that the grant will be used for proper purposes. See Treas. Reg. 53.49455(b)(2)(i).

(2) The pre-grant inquiry should include:

a. The identity, prior history, and experience of the grantee organization and its

managers;

b. Whether the grantee has a history of compliance or noncompliance with the

terms of previous grants, and any knowledge concerning the management, activities, and practices of the grantee organization.

(3) The scope of the pre-grant inquiry will vary in each case depending on:

a. The size and purpose of the grant;

b. The period over which it will be paid; and

c. Any prior experience the grantor has had with the grantee. See Treas. Reg.

53.4945-5(b)(2)(i).

(4) Ordinarily, no further pre-grant inquiry is necessary where a grantee has properly

used all prior grants and filed the required reports. See Treas. Reg. 53.49455(b)(2)(ii) for examples illustrating the pre-grant inquiry rule.