As I discussed in Chapter 2, you must be a recognized nonprofit organization to receive most grants. Enclose proof of nonprofit status with every grant proposal, including renewal proposals. If you have a fiscal sponsor, include proof of the sponsor’s tax-exempt status. The only exceptions to this rule are government agencies (such as public libraries and schools) and religious organizations.
Federal recognition as a 501(c)(3) organization trumps every other kind of nonprofit status. If you have it, you don’t need to include proof of state exemption.