Community Benefit

Grant Applications

Please Take Note: The information provided does not constitute legal or tax advice. The material is provided for informational/educational purposes only. Please consult with counsel regarding your organization's particular circumstances.

Question: Can we report the costs incurred in preparing a grant application if the grant application is ultimately not submitted to the funder or the grant is not funded?

Recommendation: We recommend reporting the cost of the grant application when:

  • The reason for not pursuing the grant was related to the community benefit program. For example, a change in the program's priorities.
  • The resources expended may eventually be used by the community benefit program. For example, if the information is used to apply for a grant at a later time.

We recommend not reporting the cost of the grant application when:

  • The decision not to pursue the grant was unrelated to the community benefit program, including its goals and objectives. For example, a change in leadership determined not to use outside funds for any programs.

(Updated November 2015)