We’re continuing with our deep dive into the different types of donors, where they get their funding from and how they operate. We’ve covered Multilateral Grantmaking Organisations and Foreign Governments. Today, I’d like to introduce you to Foundations.

What is a Foundation?

A Foundation is a type of nonprofit organisation, typically established to donate funds and resources to charitable causes, with the primary function of distributing grants to other nonprofits or individuals. Foundations are considered charitable organisations, meaning they are established to benefit the public or a segment of the public.

How are Foundations different from other nonprofits?

Foundations are created to support social causes and areas of community need through financial donations and grants. Unlike other nonprofits that may engage in various activities to support their beneficiaries, Foundations are primarily focused on distributing grants like scholarships, funding for programs, or support for research and other initiatives.

How are Foundations funded?

Foundations are typically funded by endowments, donations, or other sources of income that are then used to make grants. Funds can be provided by an individual, a family or a group of individuals who set the purpose of the Foundation based on their personal views, passions and interests.

Governance and legal status

Foundations are governed by a board of trustees or directors who are responsible for overseeing the organisation & it’s operations and ensuring that its mission is carried out effectively.

Foundations are typically established as legal entities, such as corporations or trusts, and are subject to the laws and regulations governing nonprofits in their jurisdiction.

What activities will Foundations support?

Foundations can support a wide range of activities, including funding for research, education, healthcare, arts and culture, and environmental protection.

What do Foundations look for when choosing funding recipients?

The great advantage of applying for Foundation funding is that Foundations are typically not constrained by global goals or politics. Take a close look at the Foundation’s purpose statement and talk to the Foundation about its goals. In order to apply successfully, your organisation’s activities must match their declared objectives. Don’t cookie-cutter an old proposal, but thoughtfully work to create an attractive and aligned proposal that is relevant to that specific Foundation.

When applying to a Foundation, get to know their people, learn about their vision, and make sure that your projects and/or programmes align with theirs. As always, it’s helpful to share your (measurable and track record) impact and your strong reporting systems.

Remember, Foundations, like people, are all different.

Please contact us if you would like some assistance in evaluating and answering a funding call from a Foundation – our team of NPO specialists is on standby.