The application for the Ann Land and Bertha Henschel Grant requires verification of my organization’s not-for-profit status. What document satisfies this requirement?

You should provide a copy of a letter from the Internal Revenue Service confirming your organization’s tax-exempt status.

The application asks for a letter from the Revenue Division of the City’s Finance Department verifying that my organization is exempt from the City’s business-operations tax. How do I get such a letter?

To document that your organization has nonprofit status and provides services within the City, you must submit two documents to the Revenue Division:

  • A Business License Tax Application. 
  • A written request for an exemption from the business-operations tax, accompanied by a copy of a letter from the Internal Revenue Service confirming your organization’s tax-exempt status.

The Revenue Division typically needs about two weeks to process these forms and issue a letter confirming an exemption from the business-operations tax.

  • If a confirming letter is issued before your organization submits its grant application, then you must include a copy of the letter with the application.
  • If a confirming letter is not issued before your organization submits its grant application, the Commission will nevertheless consider the application to be complete and on-time if the application includes proof (e.g., a dated receipt from the Revenue Division) that both the Business License Tax Application and a written request for an exemption from the business-operations tax were submitted to the Revenue Division before the deadline for filing grant applications. You will still be required to bring the confirmation letter to the Commission Annual Funding Meeting in November, or your organization's application will be disqualified.

The Business License Tax Application form states that the Business Tax Certificate will be sent out in approximately two weeks, but my organization’s grant application is due sooner than that. May my organization include proof in its grant application that the form was timely submitted and then bring the letter confirming the exemption to the November meeting?

Yes, as noted in FAQ 2, the Commission will consider an application to be complete and on-time if the application includes proof (e.g., a dated receipt from the Revenue Division) that both the City Business License Tax Application and a written request for an exemption from the business-operations tax were submitted to the Revenue Division before the deadline for filing grant applications. You will still be required to bring the confirmation letter to the Commission Annual Funding Meeting in November, or your application will be disqualified.

Does a letter from the City that confirms my organization’s exemption from the business-operation tax ever expire?

The letter will not expire unless your organization’s not-for-profit status changes.

If my organization is informally associated with other nonprofit organizations, may it submit two applications—one for itself and one for the association—with the applications seeking grant funds for two distinct purposes?

Your organization may submit an application either on its own behalf or on the association’s behalf, but it may not submit applications for both.

What is an allowable expense?

Grant funds must be used exclusively to carry out activities that benefit, aid, or assist the destitute men, women, and children of the City. Your organization may not use grant funds to defray its administrative expenses, overhead, or unanticipated expenses, although the Commission, in its discretion, may make exceptions. Note, too, that grant funds may be expended only during the term of your organization’s grant agreement and only for activities explicitly identified in the grant agreement.

Need assistance or have further questions?

We are happy to assist you. Please contact us via email at:bjsmith@cityofsacramento.org, or by calling Barbara Smith at (916) 808-5762.

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