Nonprofit Law/google grant


We received a google ads grant to allows us to create ads that come up when google searches are performed.  From what I can see we are getting lots of traffic to our website but have not received a single donation from what ever is going to our site.  Problem is do we need to claim this type of grant as it makes it look like we are spending 150K a year for marketing.  This makes us look like we are not spending on Veteran and only on marketing.  Should we drop the grant?  Do we need to claim this?


I have in my profile that this free forum is only for general questions about IRS federal exemption issues of 501(c)(3) organizations. Therefore, I am assuming you are referring to such an organization.

It appears that you received a cash grant from Google.  If that is not correct, please inform me what they are giving to your organization.  It appears that the grant requires that you spend the grant funds on marketing.  Therefore, your organization can explain to anyone who inquires as to why you are spending that amount on marketing.

Certainly you would need to declare the income coming from income on your IRS form 990 or form 990-ez.

Harvey Mechanic
Attorney at Law

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.

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Harvey Mechanic


DO NOT GIVE ME INFORMATION THAT YOU WANT KEPT CONFIDENTIAL. I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "" without the quotes and then add your search terms before hitting enter.


I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.


B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.

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