Chapter 3 › V.A–B PNP Organization Eligibility; For-Profit Entities

Can our nonprofit apply for Public Assistance?

FEMA term

Private nonprofit (PNP) organization eligibility

Short answer

Possibly. A private nonprofit must pass three tests: it is an established nonprofit (shown by an IRS ruling letter or state documentation in effect on the declaration date), it owned or operated a facility at the time of the incident, and that facility provides an eligible service, either critical or a noncritical but essential social service. Houses of worship can qualify.

What FEMA requires

FEMA evaluates the organization’s status and the services provided in each facility it owns or operates.
All three criteria in the table must be met.
To show nonprofit status: an IRS ruling letter in effect as of the declaration date granting exemption under section 501(c), (d) or (e); or state documentation that it is a non-revenue producing nonprofit organized or doing business under state law.
If not required to obtain 501(c)(3) or state tax-exempt status, provide articles of association, bylaws or other documents showing it is an organized entity, and a certification of compliance with section 501(c)(3) and state law.
For-profit entities are not eligible applicants. Governments may contract with private for-profit entities for eligible emergency protective measures, and FEMA reimburses the government.

<table class="pt-table"><thead><tr><th>All three must be true</th><th>What it means</th></tr></thead><tbody><tr><td>1. Established PNP organization</td><td>IRS ruling letter or state nonprofit documentation in effect on the declaration date</td></tr><tr><td>2. Owned or operated an eligible facility</td><td>At the time of the incident period</td></tr><tr><td>3. The facility provides an eligible service</td><td>A critical service, or a noncritical but essential social service open to the general public</td></tr></tbody></table>

Documentation

An IRS ruling letter in effect on the declaration date granting exemption under section 501(c), (d) or (e); or state documentation that you are a non-revenue producing nonprofit organized under state law; or, if exempt from both, articles of association or bylaws plus a certification of compliance with section 501(c)(3) and state law.

Watch out · Govstar practitioner advice

The IRS ruling letter must have been in effect on the declaration date. Organizations that let their status lapse, or that are still waiting on a determination, are a common denial, so confirm your status before you file the RPA.

Govstar summarizes FEMA’s Public Assistance Program and Policy Guide in plain language and links to the official text. Govstar is independent and not affiliated with FEMA. This is general guidance, not legal advice.