Grantmaking Policy — Automate the Cloud Inc.

1. Purpose

To govern grants and distributions the Corporation makes to other organizations and to individuals, ensuring every grant furthers the Corporation's exempt purposes under Section 501(c)(3), the funds are used for charitable/educational purposes, and no grant confers impermissible private benefit or inurement.

2. Permissible Grantees

The Corporation may make grants to:

1. Organizations exempt under Section 501(c)(3);
2. Governmental units and public instrumentalities (e.g., public schools, libraries);
3. Other nonprofit, charitable, religious, or educational organizations and groups — including those without their own 501(c)(3) determination — provided the Corporation confirms the grant will be used exclusively for charitable or educational purposes; and
4. Individuals, where the grant furthers exempt purposes and is awarded on an objective, nondiscriminatory basis (scholarships are governed by the Scholarship Policy).

3. Prohibited Grants

• No grant to any director, officer, employee, or their relatives or domestic partners, or to any disqualified person, or for any private benefit.
• No grant for lobbying or political-campaign activity.
• No grant that would cause the Corporation to act inconsistently with Section 501(c)(3).

4. Charitable-Use Safeguards (Expenditure Responsibility, Simplified)

For any grant to a grantee that is not a confirmed public charity under § 509(a)(1)–(3), the Corporation shall:

1. Obtain a written grant agreement stating the charitable/educational purpose and restricting use of funds to that purpose;
2. Require a report from the grantee on how the funds were used;
3. Retain the right to recover misused funds; and
4. Maintain records supporting the above.

5. Approval Process

1. Grant requests are reviewed against these criteria by the President and Treasurer.
2. Grants exceeding $1,000 (consistent with the Bylaws § 7.3 disbursement control) require approval by the Board or by a second independent authorized signer.
3. Any grant presenting a conflict of interest is handled under the Conflict of Interest Policy.

6. Foreign Grants

Grants to foreign organizations or individuals require additional diligence to ensure charitable use and compliance with U.S. law (including anti-terrorist-financing requirements). No foreign grant shall be made without prior Board approval and appropriate documentation.

7. Records

The Corporation shall document, for each grant: the grantee, amount, charitable purpose, approval, grant agreement (where required), and use-of-funds report (where required).

8. Review

This policy shall be reviewed periodically by the Board and amended as needed.