If a requirement for a grant is to be a nonprofit organization with the 501(c)(3) exemption and my foundation status classification is 509(a)(1), does that mean I am not eligible for the grant?
No. All organizations that receive charitable exemption under Section 501(c)(3) of the Tax Code are further subdivided between private foundations and public charities under Section 509 of the Code. Section 509(a) describes those types of organizations that are deemed public charities. (See Ready Reference Page: “Calculating Public Support Percentages") An organization can’t be described in Section 509(a)(1) unless it is already qualified under Section 501(c)(3).