Types of Foundations
- Community Foundation
- Community Foundations are public foundations and make grants for charitable purposes in a specific community or region. Funds are usually derived from many donors and held in an independently-administered endowment; income earned by the endowment is then used to make grants. Funding decisions are made by trustees who are chosen from the public for a specific term and are meant to represent a broad spectrum of the community's residents. Many community foundations administer donor-advised funds, which allow donors to recommend recipients without incurring the costs of running a foundation.
- Corporate Foundation
- Corporate Foundations are private foundations whose grant funds are derived primarily from the contributions of a profit-making business organization and/or its employees. The governing body is often made up of corporate management, local corporate officers, employee committees, and sometimes outside community members. Corporate Foundations may have an actual endowment, or they may receive annual funding from the corporation. Geographical range is often limited to areas where there is a corporate presence. Companies and businesses may choose to run Corporate Giving Programs without establishing a foundation.
- Family Foundation
- Family Foundations are private foundations in which the original donor or the donor's family plays a significant role in governing the foundation. The geographic and interest areas of these foundations are often limited by trustee decision and grantmaking is specific to the family's charitable desires.
- Federated Fund
- A federated fund is a joint fundraising effort usually administered by a nonprofit umbrella organization such as a United Way, which in turn distributes contributed funds to a number of nonprofit agencies.
- Operating Foundation
- Operating foundations are private foundations that use the majority of their resources to provide charitable services or run charitable programs of their own. Some grants may be made, but the sum is generally small relative to the funds used for the foundation's own programs.
- Private Foundation
- Private foundations are the most common type of foundations and are non-governmental, nonprofit organizations that are managed by trustees or directors and make grants based on charitable endowments. Because of their endowments, they are primarily focused on grantmaking and generally do not actively raise funds or seek public financial support. Private foundations with no connection to the donor family are informally known as independent foundations.
- Public Foundation
- Public Foundations are publicly supported charitable organizations that receive much of their financial support in the form of contributions from the general public. These public charities operate significant grantmaking programs in addition to their charitable activities. There are many types of public foundations including community foundations. Public foundations support a variety of interest areas with or without geographic limitations as defined in their organizing charter and/or by their governing boards.