Foundation Basics
In the field of philanthropy, the term "foundation" has no precise meaning. The Internal Revenue Code governs the operations of both private foundations (including family, independent, and company foundations) and public charities (community foundations and those nonprofit charitable organizations which raise funds to conduct their programs and operations). The rules governing private foundations are stricter in limiting foundation activities than are those for public charities.
When starting a foundation, it is essential for the donor or the donor's advisor to comprehend - at the outset - the basic legal rules that govern the formation and regulate the activities of foundations. And, while legal considerations are important, there are additional considerations in starting a foundation:
- How much administration and management do you wish to take on yourself or do you want to delegate?
- What degree of control do you want over the funds?
- Is family unity one of the motivations?
- Do you view philanthropy as a tool to transmit values?
- Should there be a mission statement?
- Will outside applications for grants be accepted?
- How will you decide grantmaking priorities and communicate them to the public?
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Is a private foundation the right choice for me?
Council Publications
The Council on Foundations produces a variety of publications and newsletters to keep you and your organization "in the know." Tapes and CDs from Council Conferences can also be ordered.
Keeping Current
Additional Resources
Tax Information
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