Private Operating Foundations

Operating foundations are private foundations that use the bulk of their income to provide charitable services or to run charitable programs of their own. They make few, if any, grants to outside organizations. To qualify as an operating foundation, specific rules, in addition to the applicable rules for private foundations, must be followed.

Below is everything on our site for private operating foundations. You can use the filtering options on the right to narrow these results.

Question: Our private foundation received a proposal for a general support grant from a public charity. The proposed grant meets our guidelines and is within our charitable mission; however, we know the charity engages in lobbying. Can we make a grant to this charity?

Answer: Yes, as long as the grant is not earmarked for the grantee’s lobbying activity. Earmarking is a written or oral understanding that funds will be used for a particular purpose.

A foundation's strategic plan describes its long-term goals and objectives, and how the organization will work to fulfill them. Like any management tool, a strategic plan—with a process to develop that plan—helps an organization improve its work. Specifically, a strategic plan focuses the board's energy, articulates explicit goals for the board and staff to work toward, and adjusts the organization's direction, if necessary, in response to a changing community.

A good strategic plan will:

The Pension Protection Act of 2006 (PPA) increased the excise tax rates for violations of many of the private foundation rules. In most cases, the first tier taxes were doubled. These changes are effective for private foundations upon the foundation’s first tax year beginning after August 17, 2006. For private foundations with calendar tax years, this translates into an effective date of January 1, 2007. Below is a review of the changes to the first tier taxes:

Many foundations may be uncertain about what’s involved when it comes to succession planning. Some wonder why they should worry about the future at all when they have so much work to do in managing their grantmaking, community leadership and development, and administrative duties.

Succession planning is more than just replacing a CEO. It’s an opportunity to evaluate what works at your foundation—and identify areas in which you can improve. It can give both the board and staff a clear picture of long-term goals, and help you set priorities and make decisions.

A collection of all impact investing publications from Mercer.

From Boston College Center for Corporate Citizenship, this handbook on responsible investing provides the blueprint for foundation asset managers interested in multiplying their organization’s impact on society through options that link mission with investments that create long-term value to society.

Prepared by the Southern New Hampshire University's School of Community Economic Development and available through Mission Investors Exchange, this case study explores the details of the F.B. Heron Foundation's rationale, exploration, and implementation of its mission-related investment strategy, and reviews tools (including PRIs), specific investments, interim outcomes, and lessons learned. The case study provides a walk-through of how Heron applies its Mission-related Investment Continuum to its portfolio.

By FSG Social Impact Advisors, this report provides the first comprehensive analysis of mission investing by U.S. foundations and analyzes the activity of 92 U.S. foundations, which have made a combined total of $2.3 billion of mission investments.

From the New Economics Foundation, Mission Possible considers how foundations might more effectively use a proportion of their endowment in support of the change they set out to create – their mission. Starting from the premise that paths are made by walking, it explores the potential of ‘mission-connected investment’ or MCI – defined as investment which promises a market return but also helps to achieve mission.

From Rockefeller Philanthropy Advisors, this publication that can inform decisionmakers in philanthropy about how to move forward and implement an agenda for impact investing in their institutions.

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