The Foundation requires that domestic private foundations and foreign organizations treated as private foundations submit a “Redistribution Statement” periodically to comply with IRS regulations. These forms are used to verify that the organization has complied with the “out-of-corpus” rules associated with expenditure-responsibility grants.
Out-of-corpus means that the organization is required, during the fiscal year of the grant, to make expenditures equal to or greater than 1) the full amount of the grant 2) plus 5% of the value of the organization’s investment assets (the value of investment assets is defined as the value as of the previous fiscal year). If the organization does not have investment assets, as is the case with many foreign operating foundations, then item 2) above is not applicable and can be treated as having been met. Submission of the “Redistribution Statement” will be outlined in the grant agreement. Grantees are encouraged to contact their program officer if they have questions regarding this requirement.
Special reporting requirements also apply to expenditure-responsibility grants that involve re-granting of Mott Foundation funds to sub-grantees. These reporting requirements will be listed under the “Reports” section of the grant agreement.