Public Foundations

Public foundations are grantmaking public charities that gain their funds from a variety of sources, which may include foundations, individuals, corporations, or public entities. Public foundations may engage in fundraising, and may seek broad public financial support. They may or may not have endowments. There is no legal definition of a public foundation, but most dedicate a significant portion of their annual budgets to grantmaking. Most community foundations are also grantmaking public charities.

Since public foundations may be defined in different ways, and there is no official IRS or legal definition of public foundations, it is difficult to arrive at statistics that are fully representative of the field.

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

Moved by widely publicized human suffering and increased disaster aid requests, foundations and corporations are becoming more active in the disaster relief field. Grantmakers have a distinct role to play in disasters because of their ongoing relations with grantees, long-term perspective, flexibility and convening capacity.

Americans may disagree about various aspects of war, but there is broad support for helping the men and women who are fighting in wars and the families they have left behind. Dedicated assistance groups are working to provide aid to military personnel and their relatives. This article surveys the different purposes for which charitable grants can be made and discusses the role that grantmakers can play in those efforts.

Ideally, grantmakers will work with an existing charity or other well-established organization to provide disaster relief. But in the months after a disaster, it is not uncommon to see new charities cropping up in efforts to meet the immense and diverse needs of the affected communities. The problem is that it may take many months before a new organization is officially eligible to receive charitable contributions. Generally, an organization is not considered to be a public charity until it has a determination letter from the IRS stating that its public charity status has been recognized.

The private foundation executive director was concerned. Members of her board were going to make grants to promote public housing and economic development but none of the groups involved were the typical 501(c)(3)s to which the foundation normally made grants. One possibility seemed to be making a grant to a local government agency, but the agency had no IRS tax-exemption letter. Would the foundation have to exercise expenditure responsibility?

Public foundations, community foundations and corporate giving programs may establish a matching gifts program that will match disaster relief gifts made by employees or other donors living in the U.S. or anywhere in the world, provided the grantees are public charities based in the U.S., and gifts are not made from a donor advised fund.

Matching gifts from donor advised funds or private foundations can be done, but grantmakers will have to comply with the rules applicable to these giving vehicles.

Grants to Public Charities from a Public Charity

Unless from a donor-advised fund, disaster relief grants to domestic section 501(c) (3) public charities do not present special issues.

For many foundation managers, meeting community, regional, or even global needs is a primary aspect of everyday business. But when disaster strikes, foundations may find the need to quickly provide relief while accurately navigating a new set of grantmaking rules. These guidelines outline the basic legal considerations of a variety of popular giving options for managers of public and private foundations and corporate giving programs.

Since the terrorism attacks of September 11, 2001, grantmakers and other charitable organizations have become quite familiar with the work of the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) in the area of anti-terrorism concerns. OFAC has been one of the key U.S. government agencies seeking to shut down terrorism funding around the world and, in conducting that activity, has focused considerable attention on charities.

Developed by the Treasury Guidelines Working Group of Charitable Sector Organizations and Advisors

Since the November 7, 2002 publication by the United States Department of the Treasury of its “Anti-Terrorist Financing Guidelines: Voluntary Best Practices for U.S.-based Charities,”1 grantmakers have grappled with the problem of how to comply with their legal obligations under Executive Order 13224, the USA Patriot Act, and other laws and regulations that prohibit financial transactions with terrorists and their supporters.2 The Treasury Guidelines map out one route to compliance, but both grantmakers and operating charities have criticized them for failing

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