Foundation Types
A foundation is a nonprofit organization that provides funding to charitable causes. Private foundations are typically funded by an individual or family and give grants to public charities. Public foundations rely on public donations and fundraising.
Starting a Foundation
To start a foundation generally requires significant funds. If hiring a third-party administrator, $500,000 is usually considered the minimum. With hired staff, foundations often have $2-5 million in initial assets.
Foundation Functions
A foundation provides funding to charitable causes. Both types of foundations require registration and oversight. Grant application processes differ but commonly involve submitting letters of inquiry, proposals, budgets, and waiting for approval.
Independent and Grant-Making Foundations
An independent foundation receives funding from a single source, like an individual or group. Many start as family or corporate foundations. A grant-making foundation focuses on organizing and distributing grants and functions as a public foundation.
Nonprofit vs Foundation
What is the difference between a nonprofit and a foundation?