Delaware Nonprofit Intel - 2026-06-05 | Axiom Synapse

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Welcome to your daily briefing on nonprofit developments in Delaware. Today we're covering 5 key stories including updates on delaware nonprofit headlines, background & context. Let's dive in.

Delaware Nonprofit Headlines

2 stories

1.1

Partners in Giving RFP Opens Jan. 15 for Delaware County Nonprofits.

The Foundation for Delaware County and The Community's Foundation have launched a collaborative 2026 grant cycle offering up to $15,000 in program or project support across five priority areas: cancer survivors, community development, health, hospice and home healthcare, and youth development.

Why It Matters

This joint effort reduces administrative burden for DE nonprofit professionals by aligning application processes, timelines, and funding priorities between two major local foundations.

Sources:Source

1.2

Delaware First Health opens grant funding for community organizations.

Delaware First Health and the Centene Foundation launched an open submission period for community-based organizations and providers across Delaware to apply for grant funding through June 13, 2025.

Why It Matters

Nonprofit professionals in DE have a time-limited opportunity to secure funding from a major health plan and corporate foundation partnership.

Sources:Source

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Background & Context

3 stories

2.1

A conflict-of-interest policy that fails the test.

The IRS-recommended COI policy requires (1) annual disclosure by all directors and key employees, (2) a process for review of any disclosed conflict, (3) recusal procedures, and (4) documentation in board minutes. Policies that have only the disclosure form without the review and recusal process do not satisfy the recommendation.

Why It Matters

A weak COI policy is a Schedule L disclosure waiting to happen, and Schedule L disclosures correlate with future IRS examination selection.

2.2

The restricted-fund violation auditors find most often.

Donor-restricted gifts must be tracked separately and used only for the restricted purpose; using them for general operations — even with intent to "pay back" later — is a fiduciary breach and an audit finding. The most-common fact pattern: cash-flow shortage in operations, restricted-grant balance available, transfer "borrowed" with no formal repayment plan.

Why It Matters

State attorneys general have authority over restricted-gift compliance and have pursued individual board members and executives. Auditors are required to disclose restricted-fund violations in the management letter.

2.3

Private inurement and private benefit are different problems.

Private inurement is benefit flowing to insiders (officers, directors, key employees); it is an absolute prohibition. Private benefit is benefit to outsiders that is more than incidental to the exempt purpose; it is a question of degree. Both can revoke exemption, but the legal analysis differs.

Why It Matters

Insider transactions trigger automatic intermediate sanctions even when the exemption survives. Outsider benefit triggers a facts-and-circumstances analysis. Distinguishing them shapes the defense.