Guidelines of The Chapman Trusts There are two charitable trusts founded by H.A. Chapman and his wife, Mary K. Chapman. Both are administered at the offices of Chapman Foundations Management, LLC in Tulsa, Oklahoma, and in Colorado Springs, Colorado. Founders H. Allen Chapman was born in Colorado in 1919. The son of philanthropists, James and Leta Chapman, he lived most of his life in Tulsa where he was an independent oil and gas producer. In 1976, he established the H.A. and Mary K. Chapman Charitable Trust, a perpetual charitable private foundation that was funded with a bequest from his estate when he died in 1979. Mary K. Chapman was born in Oklahoma in 1920. She graduated from the University of Tulsa and worked as a nurse before her marriage to H. A. Chapman in 1960. After the death of her husband in 1979, she maintained her own personal charitable giving program. Before her death in 2002, Mary K. Chapman established The Mary K. Chapman Foundation, a charitable trust founded to perpetuate her own charitable giving program after her death. Administration of Trusts Chapman Foundations Management LLC, is the entity that administers both the H.A. and Mary K. Chapman Charitable Trust and The Mary K. Chapman Foundation (the Chapman Trusts ). Donne W. Pitman and J. Jerry Dickman jointly manage the operations of this entity as its executive managers. Donne Pitman and Jerry Dickman also serve as the sole Trustees of each of the Chapman Trusts. They jointly establish the grant making programs, guidelines and policies of the foundations, maintain the investment of the endowments, and make all final decisions of declination or acceptance of all grant requests. Grants Programs Each trust maintains a separate charitable grant making program. A major charitable focus of H. A. Chapman during his life, and the lives of his philanthropic parents, James A. and Leta Chapman, was education and medical research. Historically, that focus has been continued by the foundation that he established. Mary K. Chapman was also interested in supporting education, but as a former nurse and a very compassionate person, much of her charity was directed to health, medical research, and educating and caring for the less fortunate and disadvantaged. Though there are these and other differences in the founders major charitable objectives, the combined grant making programs of the two Chapman Trusts are broad-based. They provide support for nonprofit organizations involved in a wide variety of charitable purposes, including education, medical research, health and human services, arts and culture, civic and community, and nature and wildlife. The allocation of available funds to these purposes is changed from time to time according to the current giving program established by the Trustees. In the interest of efficiency and lower administrative costs, the trusts are administered jointly, using common forms, guidelines and procedures. The co-managers and Trustees allocate each grant request to the appropriate trust. Grant Approval Guidelines and Policies Eligible Charities. The Chapman Trusts make grants only to charitable organizations, not to individuals. To be eligible, charities must (i) be qualified as tax-exempt under 501(c)(3) of the United States Internal Revenue Code, and (ii) also maintain a classification by the IRS as a public charity, not a private foundation, under 509(a)(1) or (2) of the Code. Because Congressional legislation approved in August, 2006 placed limitations on grants to certain supporting organizations classified as public charities under 509(a)(3), we do not make grants to such organizations. In some instances we can make grants to an organization supported by a supporting organization. Only in rare instances will the trusts make grants requiring the exercise of expenditure responsibility. Certain public instrumentalities are also eligible to receive grants.
Geographic Limitations. Grants are not made in support of operations or programs conducted outside the United States. Depending on the availability of funds and the program area of interest, the managers and Trustees may give priority to the following geographic areas of the United States: Colleges and Universities: Oklahoma, Arkansas, and Texas Elementary and Secondary Education: Oklahoma Healthcare: Oklahoma Human Services: Oklahoma Civic and Community: Oklahoma Arts and Culture: Oklahoma Within Oklahoma, the order of priority will normally be (i) Tulsa and surrounding counties, (ii) eastern Oklahoma, and (iii) statewide. Types of Requests. The Chapman Trusts will consider requests for support of capital projects and operating programs. Grants are not made for the following purposes: To be passed-through to another organization that is not a 501(c)(3) public charity or a governmental entity. To attempt to influence legislation or the outcome of any election, or to political campaigns. Grant requests for the following purposes are not favored: Endowments, except as a limited part of a capital project reserved for maintenance of the facility being constructed. Deficit financing and debt retirement. Projects or programs for which the Chapman Trusts would be the sole source of financial support. Travel, conferences, conventions, group meetings, or seminars. Camp programs and other seasonal activities. Religious programs of religious organizations. Project or program planning. Start-up ventures are not excluded, but organizations with a proven strategy and results are preferred. Purposes normally funded by taxation or governmental agencies. Requests made (i) less than nine months from the declination of a previous request by an applicant, or (ii) within nine months after the last payment made on a grant made to an applicant. Requests for more than one project. Requests by grantees who require that a portion of the amount granted be used for administration, overhead and/or capital costs not directly related to the purpose of the grant. Requests with the following attributes are favored: Funding the project or program will serve a documented need and have a significant impact on the community. Financial support of (i) the organization management and board of directors, (ii) individuals of the general community affected by the program or project, and (iii) other private foundations. Sound financial planning for maintenance and continuation of the project or program after the initial funding is complete. Potentially benefits a significant segment of people. Applicant has committed volunteers and staff leadership. Grant Approval Procedure Guidelines There are two steps in the process of applying for a grant. The first is a Letter of Inquiry from the applicant. This letter is used to determine if the applicant will be invited to take the second step of submitting a formal Grant Proposal. Letter of Inquiry. Applicants should submit a brief Letter of Inquiry by email to grants@chapmantrusts.com. The Letter should describe the applicant and the project or program for which it seeks financial support, and verifying the applicant s eligibility for a grant. The letter should not exceed three pages in length. New applicants should also include an attached IRS determination letter. The co-managers will review each Letter of Inquiry and jointly determine if the applicant is eligible for a grant and whether the 2
project or program (i) is within a current giving program of either of the Chapman Trusts, and (ii) meets the Grant Approval Guidelines and Policies. If so, the applicant will be invited to take the second step of submitting a Grant Proposal. Applicants will be promptly advised of this determination. The Foundations accept Letters of Inquiries on a rolling basis and there are no set submission deadlines. Also, an invitation to submit a Grant Proposal does not indicate that a grant in any amount will be made. Grant Proposal. Invited applicants should complete and submit the Grant Proposal form specified by the trusts, in triplicate, without binding or tabs. Changes are made to the form regularly, and applicants will be given an electronic Grant Proposal form via email. The Grant Proposal must be signed by an authorized officer, normally a President, Vice-President, Executive Director, or officer other than a development director. Supporting Documentation. The following Supporting Documentation should accompany the Grant Proposal: Annual financial statements (audited, if available) of the applicant for the most recent two fiscal years (1 copy). Annual operating income and expense budget for applicant s most recent completed year and current year (3 copies). If the proposal is for an operating program, (i) the income and expense budget for the program for the period for which funding is sought, and (ii) a statement of the actual income and expense of the program during the most recent corresponding period (3 copies). If the proposal is for a project, a detailed budget of the estimated expenses of the project (3 copies). A list of applicant s executive staff and board of directors (3 copies). A list of major contributions ($5,000 or more) to the project or program (i) by the applicant s board of directors as a whole, (ii) by any governmental agencies, and (iii) by individuals, corporations and other private foundations (3 copies). Tax Documentation. The following Tax Documentation should accompany the Grant Proposal: One copy of the most recent IRS letter determining applicant to be (i) qualified as a 501(c)(3) organization, and (ii) classified as a public charity, not a private foundation, under 509(a)(1) or (2) of the Code. If the applicant relies upon a group determiination letter issued to its parent organization, then the applicant should also submit a list of the subordinates entitled to rely on the group ruling. If the date of the determination letter is more than 10 years prior to the submittal of the Grant Proposal, the applicant may be asked to obtain an updated determination from the IRS. One copy of the most recent Form 990 filed by the applicant with the IRS, including Exhibit A, or an explanation of why none has been filed. The managers review the Form 990 to determine, among other things, whether the applicant s claim for and compliance with public charity status is consistent with the basis of the classification made by the IRS. If there is an inconsistency, the applicant will be asked to submit additional documentation verifying the public charity classification. Additional Documentation. One copy of additional documentation may be provided at the option of the applicant, or may be required by the managers upon review of the Grant Proposal and the Supporting Documentation and Tax Documentation. Review Process. Upon receipt, each Grant Proposal is reviewed by the staff and the comanagers (i) to verify the applicant s tax status as a 501(c)(3) organization classified as a public charity or a public instrumentality, and (ii) to determine if the proposal is complete without additional documentation and information from the applicant. Only after all pertinent information has been obtained and reviewed will the proposal be set on the agenda for final consideration along with 3
other proposals at the next appropriate grant review meeting of the managers. Applicants will be advised when the proposal has been processed and when it will be scheduled for a grant review meeting of the Trustees. Site Visits and Meetings With Managers. In some circumstances the managers may request a site visit or a meeting with the applicant if they believe it will be useful to the review process. Applicants may also request a site visit or meeting anytime after filing a Letter of Inquiry, but the managers have limited time for such events, and the requests are likely to be declined if the managers believe a site visit or meeting is unnecessary to their complete understanding of the proposal. Trustees Grant Review Meetings. Regular grant review meetings of the Trustees are held quarterly in March, June, September and December of each year. Because of the detail of the review process, and the large number of proposals received, applicants should not expect their proposals to be heard at a particular meeting unless the proposal, all required documentation, and any additional information requested after the filing of the Grant Proposal, is delivered to our office no later than the 10 th day of the month preceding a quarterly review meeting. Even then, special circumstances may require a lengthier review process and scheduling the proposal at a later meeting of the Trustees. Applicants are urged to submit proposals well in advance so there is ample time for a thorough review. Naming Opportunities. A naming opportunity is normally not a significant consideration in the review of a Grant Proposal. Decisions of Trustees. The structure of the giving programs of the two trusts, and all final decisions with regard to either a Letter of Inquiry or a Grant Proposal, are made jointly by the two Trustees. Applicants will be promptly advised of these decisions. Applicants whose proposals are declined or who receive grants in amounts less than requested should understand that the trusts receive many more proposals than they have resources to fund. Grant Documentation. Each grant awarded will be documented by a grant agreement (i) specifying the amount of the grant, (ii) the purpose for which the granted funds must be used, (iii) the terms of payment, (iv) any post-grant requirements, and (v) other conditions on which the grant is made. This agreement will be prepared by the trusts and submitted to the applicant for approval and execution by an authorized officer. Grant payments must also be documented by a receipt signed by the applicant. Grant Evaluation. The trusts expect to maintain a continuing relationship with applicants receiving grants so that they can monitor the use and effect of their awards. Most grant agreements will require periodic reports on the project or programs of the applicant. Even in the absence of such requirements, applicants should expect to provide evaluation information when requested. Guideline Changes Guidelines are subject to change, and exceptions to the guidelines may be allowed, in the discretion of the trustees. Copies of the current guidelines are available by contacting the office of Chapman Foundations Management, LLC or by visiting our website at www.chapmantrusts.org. Contact Information Letters of Inquiry and Grant Proposals may be submitted by mail or delivery to the office located at: Chapman Foundations Management, LLC 6100 S. Yale, Suite 1816 Tulsa, OK 74136-1945 General inquiries regarding the grant programs and procedures should be made to the Program Officer. The office telephone number is 918-496-7882 and the fax number is 918-496-7887. Electronic correspondence may be directed as follows: Donne Pitman: Jerry Dickman: Andrea Doyle: General: donne@chapmantrusts.com jerry@chapmantrusts.com andie@chapmantrusts.com grants@chapmantrusts.com 4
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