Direct charitable activities (DCAs) are initiatives where a foundation maintains significant involvement, rather than solely awarding grants to organizations that carry out the work.
Examples of DCAs:
- Educational Initiatives: Conducting seminars, conferences, or training sessions.
- Direct Aid: Providing goods, shelter, or clothing with active foundation involvement in distribution or delivery.
- Research & Dissemination: Conducting research with broad significance (beyond the foundation’s grant program and unrelated to lobbying) and publishing related findings or educational materials.
- Advisory Roles: Supporting foundation staff participation on boards, advisory committees, public commissions, or task forces.
- Technical Assistance: Offering expertise and support to grantees.
Reporting & Financial Considerations:
- Expenses related to DCAs count toward a foundation’s qualifying distributions and must be reported annually on Form 990-PF.
- Activities such as reviewing grant applications, conducting site visits, or selecting grantees typically do not qualify as DCAs.
- Foundations engaging in a high percentage of DCAs may have increased administrative expenses.
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