Grant Seeking Tips
Foundation Types and Terminology
  • Private/Independent Foundation: A 501(ex3) organization that is originally funded from one source, that derives revenue from earnings on its investments, and that makes grants to other charitable organizations as opposed to administering its own programs. Gifts to private foundations are not normally as advantageous to the donor as gifts to a public charity.

  • Operating Foundation: A fund or endowment designated by the Internal Revenue Service as a private foundation, yet which differs from a typical private foundation in that its primary purpose is to conduct research, promote social welfare or engage in either programs determined by its governing body or establishment charter. It may make some grants, but the sum is generally small relative to the funds used for the foundation's own programs.

  • Corporate Foundation: The philanthropic organization established to coordinate, over a period of time, the philanthropic interests of the sponsoring company. Corporate foundations are very explicit as to their fields of interest, often limiting grants to causes related to corporate profits and interests, such as the communities where they are headquartered or the communities where they have branches. (Contact the office of University Corporate Relations with queries regarding Corporate Foundations.)

  • Public Charity: A 401(cx3) organization that is not a private foundation, either because it is "publicly supported" (that is, it normally derives at least one-third of its support from gifts and other qualified sources) or it functions as a "supporting organization" to other public charities. Some public charities engage in grantmaking activities, but most engage in direct service activities. Public charities are eligible for maximum tax-deductible contributions from the public and are not subject to the same rules and restrictions as private foundations. They are also referred to as "public foundations."

  • Community Foundation: Most often, a publicly supported organization that makes grants for social, educational, religious, or other charitable purposes in a specific community or region. Funds are derived from many donor sources, and retention of such funds as endowment is usually encouraged; income, including that earned by the endowment, is then used to make grants. Although some community foundations are designated by the IRS as private foundations, most are classified as public charities for the maximum tax-deductible contributions from the public.