Can a private charity?
Yes. Public charities and private foundations can give grants to individuals. However, there are additional requirements and procedures that private foundations need to fulfil: Grants to Individuals Additionally, donors generally cannot give funds to a 501(c)(3) that are earmarked for individuals. Such contributions will not be tax-deductible, and if substantial, may also jeopardize the organizations 501(c)(3) status. For example, if the nonprofit raises funds for a scholarship for John Smith or for the son of the owner of the neighborhood supermarket that is closing down, that could cause issues. This is different from setting up a scholarship program where all minorities from low income families may apply to, and the nonprofit selects from applicants.