Donors wishing to help the victims of a tragedy, a serious illness, or other major hardship are often surprised to learn that gifts earmarked for specific individuals are not tax deductible as charitable contributions. This rule catches many donors off guard as it is not intuitive that gifts made to individuals who are clearly in need would not be considered charitable.
The trouble with obtaining grants from foundations is that you either have to be very well known, like a children’s hospital or a well-established school, or you have to have a very strong in. Most non profits, especially new ones, typically have neither. However, if your program is fulfilling a compelling need in a new and creative way, you may still attract those elusive grants.