The IRS requires all entities receiving grants from private foundations to submit a report which includes a financial accounting and a statement of the progress made toward the goals of the grant:
“The granting private foundation must require reports on the use of the funds, compliance with the terms of the grant, and the progress made by the grantee toward achieving the purpose for which the grant was made. The grantee must make an annual accounting of the funds at the end of its accounting period and must make a final report on all expenditures made from the funds in addition to the progress made toward the goals of the grant.”(IRS Pub. 578.)
Your report should include two parts: (1) A narrative summary of the need as stated in your grant application and an explanation of progress made toward fulfilling that need; and (2) a financial statement showing all expenditures of grant funds, including any costs, purchases, vendor names and all other relevant expense information.
Your narrative report and financial statement may be in PDF or Word format. You may submit separate or combined reports.