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Page History
Standard Name: | Grant-Making Standard |
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Relevant Policy: | |
Relevant Standard: | Church and Project Fund Standard |
Creation Date: | 8/23/2023 |
Last Revision Date: |
Table of Contents
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. 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.
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Expense Requests:Expense Grant Request Form: used for both one-time and recurring expense requests and grant report(s). Expense Grant Requests may be submitted before or after the expenditures occur. If prior to expenditures, the requestor may estimate amounts for intended purchases to receive monies in advance of expenditures and would need to submit receipts after expenditures occur along with the grant report. If the Expense Grant Request is submitted after expenditures, the requestor enters the exact purchase amounts on both the request tab and may immediately complete the reporting tab following the reporting guidelines outlined below including receipt submissions. Timeframe of Disbursement: Grant disbursement is subject to available funds. One-time expense grants are normally disbursed upon approval. Recurring expense grants are disbursed monthly on the 10th of the month or the Friday before the 10th, if the 10th falls on a weekend or U.S. bank holiday. |
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Stipend Requests:Stipend Grant Request Form: used to request a monthly recurring stipend disbursement to a Designated Grantee. The requestor will note stipend amounts and details about Designated Grantees, and follow the reporting guidelines outlined below including receipt submissions. Amounts for stipends are determined by the church/ministry partnership. Grant stipend disbursement for Designated Grantees is subject to available funds. Grant stipend disbursement amount does not increase based on donations received to the church/project fund. Grant stipend disbursement will result in a lower amount distributed if funding is unavailable. If the fund does not have enough to cover the stipend amount for the Designated Grantee for one month, Reliant will not automatically disburse an additional stipend amount the following month to make up the difference. The distributed amounts can only be increased by submitting a new grant request (either a separate one-time stipend request to make up the difference from previous months missed due to low funding or by requesting a change addendum to the recurring amount request form that more accurately reflects the available funding). If the amounts or names change for the Designated Grantees outlined on the Stipend Request Form, an addendum to the stipend request is required. Addendums require approval by both the Authorized Signer and Reliant. Stipend Agreement: A stipend agreement is a document required to be signed by any Designated Grantee receiving a stipend disbursement to acknowledge Reliant's requirements of a Designated Grantee. Once the stipend agreement has been signed, and the Designated Grantee has been approved, then grant stipend disbursement requests can be officially submitted. Stipend agreements are typically signed and submitted through Reliant's online application system. |
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Stipend AgreementA 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 the 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. I understand that I am qualified to be a Designated Grantee because I fulfill the following qualifications:
I affirm that I meet the qualifications listed above, and I understand (and Reliant acknowledges) that I am receiving a stipend to defray living expenses in view of my support of ministry activities and of the spiritual formation associated ministry activities as outlined in the Master Grant Agreement and supplemented by the list below. Please list the ministry activities that will be the area of focus specific to you as a Designated Grantee: ______________________________ ______________________________ ______________________________ By submitting this completed Stipend Agreement, I am agreeing that the information stated above is correct and that I understand and am in full agreement with the information outlined above. Please sign your name in agreement of the above statements on this Stipend Agreement. _________________________________ Full Name: Current Date: Phone: Email: |
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.
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Reporting StandardsReliant requires periodic accounting of the usage of the grant funds and oversees and evaluates the completion of grant reports. The Fund Custodian for the church/project fund is responsible for submitting grant reports and agrees to comply with the grant reporting and monitoring requirements as outlined below. The Fund Custodian also agrees to communicate with Reliant about any problems or post-disbursement changes. Grant Reports:After expenditures occur, grant reports are submitted on the same grant request used to request the original grant disbursement. The Grant Report is located on a tab of the Grant Request Form. Report Submission Timeline: Grant reports must be submitted periodically based on the type of grant issued.
In the event that the submission due date cannot be met, Reliant will allow up to a 15-day grace period. IMPORTANT: If grant reports are not received by their due date, Reliant will not issue additional grants from the Fund until grant reports are current. Grant Reports Include the Following:
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Suspension of Grant Disbursement:
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. 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 Fund Custodian
Rules:
Roles:
The Reliant Point Person is either a Reliant employee/associate (preferred) or if the partner does not have employees with Reliant, a vetted individual from the church/ministry assigned to run point as the main contact for the church/project fund. 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 Authorized Signer(s) is the individual(s) who is authorized to approve transfers, reimbursements, grants, and other payments from the church/project fund. The names of the Authorized Signers may be found on the Accounts Payable Signing Authority List.
The Designated Grantee(s) is a foreign national receiving monies distributed from the church/project fund.
Designated Grantee
Foreign nationals may receive monies from a church/project fund as a Designated Grantee under the conditions that the foreign national:
- Work alongside an existing Reliant partnership.
- Be identified and vouched for by a Reliant worker or church/ministry partner.
- Be vetted using the OFAC Watchlist Verification.
- Able to receive monies through the officially registered-in-country church or ministry or a Reliant employee/associate.
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Reliant will no longer send payments straight to a foreign national (direct deposited into their bank account). Exceptions remain for those very few already grandfathered in. |
Reliant Point Person
Determining Grant Payments
The church/ministry partnership determines if the Designated Grantee is receiving monthly payments or one-time payments through grants and that the Designated Grantee is in agreement on those amounts and frequency.
The program team will work with the church/ministry partner to determine a monthly amount that may be sent for support. It must be clearly communicated that Reliant cannot hire them or have the appearance that they are being paid for hours worked, even as a contractor.
- The individual receiving funds (usually the Reliant Point Person) on behalf of the Designated Grantee agrees to complete training on grants and expense submissions and agrees to send a grant report every 6 months for the monthly payments received.
- Agree to (when living outside U.S. soil) inform Reliant if they come to the U.S. for any extended amount of time, because Reliant cannot send them payment if they are on U.S. soil.
Once the above criteria have been met, and the Designated Grantee has been approved, then any associated project funds (whose sole purpose was for Designated Grantee funding) can be officially created.
Grants: Payment type (both recurring and one-time special payments) used to reimburse church and project fund expenses and used to send funds to Affiliated Project Fundraiser.
Process of Grant Payment Approval
- We propose that the Grant Request and AP Request be combined into one form. The form will include an Office Use Only Tab to be used by Accounting to process the AP Request portion and a tab for approvals from the Director of Organizational Affairs and Chief Financial Officer. The form will be used externally for staff to initiate a grant request and internally for processing payment.
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- Reviews all expenses and receipts to confirm correct documentation has been received
- Confirms approval was received from the authorized signer of the project fund
- Links the grant payment request to the original approved project fund request form so that approvers can review fund purpose and fund pre-approved projected yearly grant amount
- Shares the form with the appropriate approver(s) as outlined in the approval requirements below and strives to make sure approvals are received (with the exception of board approval) in a timely manner.
- Acts as the communicator/liaison between Reliant and the individual submitting the grant request.
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One-time grant payment requests over $100,000 will need additional approval from the Executive Director
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So far in 2023, there have been 28 one-time grant requests.
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- 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 & Treasurer (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
- Approval for a recurring grant request will last up to 5 years (depending on how long the grant request is for). A new recurring grant request must then be submitted.
- If the requested approved amount or individuals receiving funds change at any point after approval, then a new approval will be needed.
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Grant Payment Approval Policy:
With our crusade for efficiency, we propose reducing the number of times a grant is reviewed and approved. In the past, we did not have Chanda and we did not have Dynamics with built-in approvals, so now, we propose incorporating both of them into our grant-approval workflow.
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Currently, the grant process goes through multiple reviews and approvals.
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QUESTIONS:
Could we have a project fund entitled Zoe #1, Zoe #2 and each fund represented a person. Solicitor- just saying who raised the money, they decide what they do with the money. Using for salary-is that ok?
Do all standards need policies? (Override fees)
If giving a grant to a registered church, do we need to know the names of the people that they are giving to? designated grantees
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GRANT STANDARD
The approval for the creation of a church/project fund confirms that Reliant is in agreement to pay out any amount of grant expenses incurred for this particular project purpose and no further approvals for increased grant amounts above the projected approved amount are needed.
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.
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Grant Approval
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