Purpose

Provide guidance on requesting and distributing grants for expense payments from church/project funds. 

Scope

This standard applies to all grants used in connection with church and project funds.

Policy Supporting This Standard

General Standards

Church and project funds ("Funds") are utilized to finance ministry projects and activities. Monies from funds are disbursed through the grantmaking process in accordance with the Funds and Grant-Making Policy for Churches and Projects

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Standard Statement

The Reliant Board of Directors desires to issue financial ministry grants to other organizations to further Reliant’s exempt purposes and for use with programs not conducted directly by Reliant. Reliant leadership will review and determine whether to approve grant requests in a matter compliant with applicable laws and regulations and according to the requirements outlined below.

The approval of a church/project fund confirms that Reliant is in agreement to pay out any amount of grant expenses incurred that are in line with the approved church/project fund purpose. Further approvals for increased grant payments above the projected amount approved for the fund are not needed.

Roles:

Reliant Point Person is desired to be a Reliant employee/associate assigned to be the fund custodian, responsible for management of the fund and compliance with policy and standards, and acts as the main contact for the church/project fund, and is required for all church/project funds. The Reliant Point Person receives and distributes monies on behalf of the church/ministry to any Designated Grantees. All church/project funds are required to have an individual assigned as the Reliant Point Person. The Reliant Point Person agrees to complete training on grants and expense submissions and agrees to send a grant report every 6 months for the monthly payments received.

Authorized Signer(s) is the individual(s) who is authorized by the church/ministry to approve transfers, reimbursements, grants, and other payments from the church/project fund as outlined on the original church/project fund request form. 

Designated Grantee(s) is a foreign national receiving monies distributed from the church/project fund in the form of a stipend.

Requests:

Grant requests are used to request grant payments from the Reliant church/project fund. The Reliant Point Person for the fund submits grant requests on behalf of the church/project fund and sends grant reports after expenditures occur. Authorized Signers of the specific church/project fund must approve grant requests before distribution.

Grants can be requested as one-time or recurring payments for expenses. Grants can also be requested by the church/ministry partnership for monthly recurring disbursement of stipends for Designated Grantees. Amounts for stipends are determined by church/ministry partnership.

Grant requests may be submitted prior to or after expenditures occur. Grant requests submitted prior to expenditure must include the intended use and estimated amounts of monies needed, which must align with church/project fund purpose, and grant reports will be added to the request following expenditures. If expenditure has already occurred, the grant request and grant report may be submitted at the same time, and the grant request is still subject to approval before monies are distributed. 

Grant reports are due within six months of receipt of funds, so grant requests should be submitted with that timeframe in mind allowing for ample time for grant report submission after expenditures occur. 

Distribution:

Grants can only be distributed through an approved church/project fund which can only be created in connection to an approved Reliant partner.

Grant recipients may be domestic or foreign. Reliant will take reasonable steps of due diligence to ensure that it is not otherwise assisting known or suspected terrorists through its foreign grant-making process, including annually checking applicable governmental lists provided and maintained by the U.S. Treasury Department.

Reliant could send stipends to NGO or Point Person....

The Reliant Point Person must clearly communicate to the Designated Grantee that Reliant cannot hire the Designated Grantee or have the appearance that the Designated Grantee is being paid for hours worked, even as a contractor. Reliant acknowledges that a Designated Grantee receives a stipend to fulfill the purpose of the fund through conducting the ministry activities outlined on the stipend agreement, and due to these ministry activities, may not be able to devote time to other work activities sufficient to support the Designated Grantee's family, so Reliant recognizes that some of the funds may be used for personal expenses.

Foreign nationals may receive a stipend from a church/project fund as a Designated Grantee under the conditions outlined and signed by the foreign national on the stipend agreement. The stipend agreement states that the foreign national:

• Conducts ministry work alongside an existing Reliant partnership.
• Specifies ministry activities expected to occur as a result of receiving stipend disbursements.
• Be identified and vouched for by a Reliant worker or church/ministry partner.
• Be vetted using the OFAC Watchlist Verification.
• Assume responsibility for applicable payment of taxes and compliance with other local employment taxes and regulations.
• Able to receive monies through the officially registered-in-country church or ministry or a Reliant employee/associate. 
• Agree to inform Reliant if they come to the U.S. for any extended amount of time as Reliant cannot send them payment if they are on U.S. soil.

It must be communicated to both the Designated Grantee and their donors to confirm their understanding that the church/project funds are not supporting an individual. They are supporting a pre-approved ministry purpose by a Reliant-approved church/project and ministry partner. Reliant acknowledges that a Designated Grantee receives a stipend to fulfill the purpose of the fund through conducting the ministry activities outlined on the master grant agreement, and due to these ministry activities, may not be able to devote time to other work activities sufficient to support the Designated Grantee's family, therefore Reliant recognizes that some of the funds may be used for personal expenses.

Once the stipend agreement has been signed, and the Designated Grantee has been approved, then grant stipend disbursement requests can be officially submitted. 

Remittance

A U.S. charity that makes international grants must demonstrate discretion and control for IRS purposes and must confirm that the ministry funds being distributed will be used for ministry purposes and not as a conduit for the non-governmental organization NGO of that country. Therefore, the Grant-Making Standard outlines those controls put in place and a remittance will be included with each grant disbursement as an acknowledgment that those terms and conditions are in place and to confirm the funds being used for this specific disbursement are being used for the agreed-upon purpose of the fund. A remittance will be sent with every grant distribution (an explanation of the disbursement of those individuals) have them sign off to confirm they got the funds as our receipt, etc. 

Additional Guidelines:

• Grants distributed must be used consistent with the agreed-upon purpose of the fund. If the purpose of the church/project fund changes, an addendum to change the purpose outlined in this Master Grant Agreement is required. 
• Reliant will refuse any grants that are requested if it determines that the grant is not in line with the approved purpose of the associated church/project fund. 
• Reliant grants cannot be used for any purpose other than those approved by Reliant.
• Reliant will require periodic accounting of the usage of the grant funds.
• Reliant retains the right to withdraw approval of a current grant or to receive a refund of any unexpended grant funds.
• Reliant grants cannot be used to cause any private inurement or improper private benefit to occur.
• Reliant will not act as a conduit of funds for any recipient. Gifts received by Reliant that will be used for grants will be accepted in accordance with Reliant’s gift acceptance policies and for Board approved purposes.
• Grant funds received by the Reliant Point Person may only be disbursed to other organizations or individuals in a manner consistent with Reliant's Grant-Making Standard with the understanding that the church/ministry and/or Designated Grantee fully complies with the grant purposes and the requirements of Reliant's policies and procedures as well as local and country laws. 
• Reliant Point Person requesting a grant must attest they agree with the Reliant Grant-Making Standard before grant funds can be distributed.
• These guidelines shall be presented to all organizations seeking funding from Reliant, and shall be publicized whenever appropriate to Reliant donors.
• All contributions are the sole property of Reliant; Reliant maintains full control of the donated funds and ultimate discretion as to their use for Reliant’s ministry purposes. 
• Reliant will take reasonable steps of due diligence to ensure that it is not otherwise assisting known or suspected terrorists through its foreign grant-making process.
• Reliant Point Person and associated church/ministry must communicate with clarity with all Designated Grantees that the Designated Grantee(s) will be responsible for applicable payment of taxes, withholding for employment taxes, compliance with local law, etc. A clear acknowledgment of these expectations for local compliance will also be noted in the Stipend Agreement that will be required to be signed by all Designated Grantees.

Stipend Agreement

Word the stipend agreement in such a way that Reliant is giving the funds to foreign national so that he can be carrying out ministry activities x,y,z and that Reliant acknowledges b/c of the time it is taking that he may not be able to devote himself to other work activities sufficient to support himself and his family so Reliant recognizes that some of the funds may be used for personal expenses and some used for direct ministry expenses

Encourage where you have a Reliant employee to try to find an entity around there that would partner with Reliant where you could send the stipends to instead. Assign the task to the Reliant employee- to find a local church entity or an NGO set up to monitor the use of the funds.

Would still be inclined to use a stipend agreement but have in that agreement that some of the oversight exercised by reliant will be done by the reliant point person to check in- are there receipts for things they have purchased with the money that helps further the purpose (not just for paying for what a paycheck would pay for)? Stipend agreement with the foreign national would say they are responsible for all the individual tax requirements, national health, etc. being done. If enough foreign nationals consider creating an entity in that country.

If amounts or names changes to Designated Grantees, an addendum to this request is required. 

Approval:

Only Authorized Signers of the specific church/project fund can approve the payment for the grant request. 

One-time grants require approval for each submission. 

Grant requests involving monthly, annual, or other periodic payments will normally (except in extenuating circumstances) be approved for a maximum of five years from the date of grant approval.  If the requested approved amount or individuals receiving funds for recurring grants change at any point after approval, then a new approval will be needed. If the grantee requires additional funding for the grant project after the grant expiration date, a new grant request must be submitted.

Required approvals are as follows:

• One-Time Grants 
  • One-time grant payment requests under $5,000 will be approved by the Accounting Manager
  • One-time grant payment requests between $5,000 and $25,000 will need approval by the Director of Organizational Affairs (in place of the Accounting Manager)
  • One-time grant payment requests between $25,000-$100,000 will need approval from both the Director of Organizational Affairs and the Chief Financial Officer

  • One-time grant payment requests over $100,000 will need additional approval from the Executive Director

• Recurring Yearly Grants (set up of recurring monthly payments)
  • Requests under up to $1,000 a month ($12,000/year) will be approved by the Accounting Manager
  • Requests between $1,000-$5,000 a month (up to $60,00/year) will need approval by the Director of Organizational Affairs (in place of the Accounting Manager)
  • Grant requests between $5,001-$25,000 a month (up to $300,000/year) a year will need approval from both the Director of Organizational Affairs and the Chief Financial Officer
  • A Grant Request over $25,000 a month will need additional approval from the Executive Director

If the Accounting Manager is unable to approve within a reasonable timeframe then the Director of Organizational Affairs may approve in their place. If the Director of Organizational Affairs is unavailable to approve within a reasonable timeframe, the Chief Financial Officer may approve in their place. If the Chief Financial Officer is unavailable to approve within a reasonable timeframe, the President may approve in their place.

Reporting:

Reliant leadership oversees and evaluates the completion of grant reports. 

The Reliant Point Person for the church/project fund is responsible for submitting grant reports and agrees to comply with the grant reporting and monitoring requirements.

After expenditures occur, grant reports are submitted on the same grant request used to request the original grant payment.

Grant reports must include the following:

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• Greater than $75 when purchased in the U.S., except for hotel/lodging receipts, which are required regardless of amount. 
• Greater than $25 when purchased outside the U.S. except for hotel/lodging receipts, which are required regardless of amount. 

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Receipts must include the following itemized details:

• What was purchased
• Total amount paid
• Date
• Name of individual (only if applicable to the receipt, such as for a flight, hotel, rental car, etc.)
• Name of the company (or person) that was paid
• If the amount that is being submitted on the form is less than the amount for the item listed on the receipt that is submitted, please add a note to the top of the receipt explaining why the request for submission is a different amount.

. Most importantly, grants must be used in a manner consistent with the designated purpose of the Fund from which it draws monies. The guidelines below describe the roles, responsibilities, processes, forms, and requirements for processing grants. 

Roles:

Fund Custodian has ultimate responsibility for the management of the fund and compliance with policy and standards, including the requirements outlined in this standard and the Church and Project Fund Standard. The Fund Custodian should be a Reliant employee or associate. In rare exceptions, a vetted individual who is not a Reliant employee or associate may act as a Fund Custodian with appropriate approval. 

Authorized Signer(s) is authorized by the church/ministry to approve transfers, reimbursements, grants, and other payments from the Fund as outlined on the original church/project fund request form. Fund Custodians are typically also Authorized Signers. In many cases, the church/ministry designates one or more Authorized Signers in addition to the Fund Custodian.

Designated Grantee is a foreign national (i.e., a citizen or resident of a country outside of the U.S. where the ministry activities associated with a given Fund are taking place) who is not an employee or associate of Reliant but functions in a capacity to support or coordinate with the ministry activities of a given church or ministry project, to benefit from spiritual formation and/or training associated with the project, and to receive a stipend from the Fund associated with the project.  

Key Responsibilities:

The Fund Custodian, as noted above, is ultimately responsible for Fund management, compliance, and communications.  The Fund Custodian must complete a Reliant tutorial on grants and expense submissions, which explains responsibilities and expectations in more detail. Certain of these responsibilities related to Grant-making are highlighted below, due to their significance:

• Sign a Master Grant Agreement on behalf of the church/ministry
• Act as the primary point of contact for questions or other communications related to the Fund and grants
• Oversee the receipt and distribution of monies on behalf of the church/ministry, including stipends for any Designated Grantees. 
• Ensure all people associated with management, distribution, or receipt of monies from Funds understand the nature, requirements, and limitations of the grants
• Ensure that grants are distributed and used for purposes consistent with the purpose of the Fund from which they draw monies
• Maintain records and documentation of the use of monies from grants
• Provide Reliant semi-annual reporting on the use of grants (See below for more detail on reporting)
• Assist Reliant in taking reasonable steps of due diligence to ensure that no grant monies are assisting known or suspected terrorists
• In relation to Designated Grantees:
  • Ensure Designated Grantees understand their role and the terms of the Stipend Agreement
  • Secure signed Stipend Agreements from all Designated Grantees

Authorized Signer(s) is/are responsible for understanding grants before requesting and approving them and making sure grant requests are consistent with the purpose of the Fund from which they draw monies.

Designated Grantees' qualifications and responsibilities are covered in detail in the section below.

Designated Grantee:

Qualifications

A foreign national who is not a Reliant employee or associate may be considered to become a Designated Grantee if the foreign national:

• Is known and vetted by an existing Reliant partnership.
• Functions in a capacity to support or coordinate with the ministry activities of a church or ministry project
• Is in accord with Reliant's statement of faith and Code of Ethics
• Is vetted using the OFAC Watchlist Verification.
• Assumes responsibility for applicable payment of taxes and compliance with all local employment taxes and regulations.
• Is able to receive monies through the officially registered-in-country church or ministry or Fund Custodian. 
• Agrees to follow receipt guidelines for each stipend disbursement received coordinated by the Fund Custodian.
• Agrees to inform Reliant if they come to the U.S. for any extended amount of time as Reliant cannot send them a stipend if they are on U.S. soil.
• Agrees to sign a Stipend Agreement (outlined below)

Other Requirements

Fund Custodian and/or associated church/ministry must communicate with clarity with all Designated Grantees regarding the functions and activities of the Designated Grantee and that the Designated Grantee(s) will be responsible for applicable payment of taxes, withholding for employment taxes, compliance with local law, etc. A clear acknowledgment of these expectations for local compliance will also be noted in the Stipend Agreement which will be required to be signed by all Designated Grantees. Reliant is not responsible for any income, employment, pension, healthcare or other taxes due in the Designated Grantee's home country related to the stipends or any other disbursements to the church/ministry partner. 

Reliant will take reasonable steps of due diligence to ensure that it is not otherwise assisting known or suspected terrorists through its foreign grant-making process, including annually checking applicable governmental lists provided and maintained by the U.S. Treasury Department.

Reliant does not employ Designated Grantees nor engage them as associates or contractors. Instead, a Designated Grantee functions in a capacity to support the ministry activities of a given church or ministry project, to benefit from spiritual formation and/or training associated with the project, and to receive a stipend from the Fund associated with the project.  Reliant recognizes that these activities of the Designated Grantee are time-consuming such that the Designated Grantee may not be able to devote time to other work activities sufficient to support the Designated Grantee's personal and family expenses. Therefore Reliant recognizes that some of the stipend monies may be used for personal expenses.   

Grant Purpose:

Once the project/church fund has been created, Reliant is in agreement to pay out any amount of ministry expenses incurred that are in line with the approved church/project fund purpose and generally adhere to the expense guidelines outlined in the Reimbursement and Expense Recovery Bonus Standard for fundamental consistency.

• Grants cannot be used for any purpose other than those approved by Reliant.
• Grants distributed must be used consistent with the agreed-upon purpose of the fund as outlined in the Master Grant Agreement. Reliant will refuse any grants that are requested if it determines that the grant is not in line with the approved purpose of the associated church/project fund. 
• If the purpose of the church/project fund changes, an addendum to change the purpose outlined in this Master Grant Agreement is required. 

Grant Stewardship Responsibility and Usage Requirements:

Partners are expected to utilize sound judgment and prudent financial management regarding ministry-related expenses. This means ensuring that Reliant's financial resources are used appropriately; support the ministry; comply with Reliant policies, applicable laws, regulations, and donor restrictions; and consider the ministry's reputation in the sense that we strive for propriety in both fact and appearance. Our stewardship responsibility also means utilizing Reliant's non-profit status for ministry purposes alone and not for personal benefit. 

• Grants must be managed in accordance with Reliant's Funds and Grant-Making Policy for Churches and Projects.
• Reliant grants must be consistent with the purpose of the fund from which the grant is distributed. Grants cannot be used as conduits to channel monies for purposes other than those for which the fund is established.
• Reliant grants cannot be used to cause any improper private benefit to occur. 
• Recipients of Reliant grants are responsible for compliance with relevant laws and regulations, including relevant tax requirements, pertinent to grants. 
• No portion of grant funds may be used for overtly political or legislative purposes (e.g., propaganda, lobbying, or other attempts to influence legislation or intervene in a political campaign on behalf of or in opposition to any candidate for public office).
• Reliant will undertake reasonable due diligence to ensure that grants are not directed to known or suspected terrorists.
• Reliant will collaborate with the church/ministry partner to ensure the grant disbursement occurs within a reasonable time frame based on the needs of the project. 
• Reliant will not physically transport hard currency for grant distribution. Reliant will use a financial institution for all financial transactions associated with grant-making from church/project funds.
  
  • A grant direct deposit agreement form must be submitted for US bank accounts along with the project fund request form. 
  • A wire agreement form must be submitted for foreign bank accounts along with the project fund request form. 
• Processing Reimbursements vs. Grants
  • Tax-deductible expenses for job-related costs incurred by Reliant employees and associates should be reimbursed to the employees and associates through the Reimbursements process, not the Grant-making process. Costs incurred by Reliant employees that are eligible for taxable Expense Recovery Bonuses (ERBs) should utilize the process for ERBs, not the Grant-making process. For more information on reimbursements, ERBs, and their distinction from grants, please see Reimbursements and Expense Recovery Home.

Submission Standards

As noted above, Grant disbursements can only occur through an approved Fund which can only be created in connection to an approved Reliant partner. The Fund must be created before grants can be requested. The Fund Custodian submits grant requests on behalf of the Fund. Authorized Signers of the specific Fund must approve grant requests before submission can be received by Reliant and considered complete for distribution.

Reliant Church/Ministry Partners receiving grants may be domestic or foreign. Reliant typically disburses grant monies to a registered in-country organization (NGO). Reliant expects the Fund Custodian to do due diligence to find a registered in-country organization that could become a Reliant Partner. Reliant may in some occasions disburse grants directly to the Fund Custodian when an NGO is not an option. 

Grant requests may be submitted prior to or after expenditures occur. However, a required grant report must be received within six months of receipt of funds, so grant requests should be submitted with that timeframe in mind allowing for ample time for grant report submission after expenditures occur. Grants may be disbursed at different times based on the type of grant request.

• Grant requests submitted prior to expenditure must include the intended use and estimated amounts of monies needed, which must align with church/project fund purpose. Grant reports will be added to the request following expenditures.
• If expenditure has already occurred, the grant request and grant report may be submitted at the same time, and the grant request is still subject to approval before monies are distributed. 

Types of Requests:

Grants can be requested as one-time expense payments, recurring expense payments, or recurring monthly stipend disbursements for Designated Grantees. 

Approval:

Only Authorized Signers of the specific church/project fund can approve payment for the grant request. 

• One-time grants require approval for each submission. 
• Recurring grant requests will normally be approved for a maximum of five years from the date of the first grant disbursement.  If the requested approved amount or individuals receiving funds for recurring grants change at any point after approval, a new approval will be needed. After the five-year approval expires, a new grant request must be submitted.

Required approvals are as follows:

• One-Time Grants 
  • One-time grant payment requests under $25,000 will be approved by the Program Leader
  • One-time grant payment requests between $25,000 and $100,000 will be aproved by the Director of Organizational Affairs.
  • One-time grant payment requests over $100,000 will need approval from both the Director of Organizational Affairs and the Chief Financial Officer.
• Recurring Yearly Grants (set up of recurring monthly payments)
  • Requests under up to $2,500 a month ($30,000/year) will be approved by the Program Leader.
  • Requests between $2,501-$10,000 a month (up to $120,000/year) will need approval by the Director of Organizational Affairs.
  • Grant requests over $10,000 a month ($120,000 a year) will need to be approved by the Chief Financial Officer.

If the first level approver is unable to approve within a reasonable timeframe, then next-level approver may approve instead. If the Chief Financial Officer is unavailable to approve within a reasonable timeframe, the President may approve in their place.

Suspension of Grant Disbursement

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Report Submission Timeline: Grant reports must be submitted periodically based on the type of grant issued. 

• One-Time Grant Report Due Date: Reports may be submitted as early as possible after expenditure, but no later than six months after receiving the monies. 
• Recurring Monthly Grant Report Due Dates: Reports must be submitted twice a year, reporting on a six-month period. For monies received January-June, the report is due by July 30, and July-December the report is due by January 30. The report is required for any months that recurring grants are received within that six-month period. For example, if a grant is received February-May, those expenses must be reported for the period report due by July 30.

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All grant requests shall be funded with the understanding that Reliant retains full and absolute discretion as to grant approvals, retains the right to withdraw approval of a current grant, and retains the right to receive a refund for any unexpended grant funds. Reliant also retains the right to discontinue funding at any time that it determines that:

• Periodic grant reports are not submitted within the submission timeline. In the event that the submission due date cannot be met, Reliant will allow up to a 15-day grace period.
• The project goals are not being met or not being adhered to.
• The monies are not being spent according to the grant request and fund purpose.
• In Reliant’s sole discretion for any other reason.

Failure to provide a complete grant report within the submission timeline may possibly result in the termination of the grant. Reliant also reserves the right to obtain a return of granted funds if timely and proper grant report documentation is ultimately not provided by the recipientFund Custodian.