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A Foundation is a type of philanthropic organization set up by either individuals or institutions as a legal entity (either as a corporation or trust) with the purpose of distributing grants to support causes in line with the goals of the foundation. Wikimedia Foundation, parent organization of Wikipedia, is an example of a foundation.

In civil law jurisdictions, the foundation finds its source in institutions of medieval times when a patron would establish a foundation to endow a monastery or other religious institution in perpetuity.

The foundation has a distinct patrimony independent of its founder and if it is not a moral person, it is considered to be a social trust.

There are several types of foundations, including family foundations, corporate foundations and community foundations. Community foundations are public charities established in communities throughout the world (there are about 700 in the U.S.) to support community efforts. Frequently, these community foundations have both funds to be used at the discretion of the board of directors and other, specialized funds established by individuals, families, businesses, and nonprofit groups at these foundations into which they contribute a variety of assets (cash and stock being among the most popular). These assets are invested and grow over time. While there are many different kinds of funds that can be established, among the most popular are donor advised funds. These enable those who established them to contribute assets into the funds at any time, and then they can recommend that grants be made from the fund to qualified nonprofit groups in any amount and at any time in the future--anywhere in the world. Community foundations also work with people to help them implement charitable giving as part of their estate plans--e.g., through a bequest.

See also

  • Charity
  • Charitable trust
  • Ford Foundation
  • Foundations in Canada
  • Rockefeller Foundation
  • Malian Foundation
  • Wikimedia Foundation
  • List of wealthiest foundations
  • Program evaluation

Further reading

  • Joan Roelofs, Foundations and Public Policy: The Mask of Pluralism, State University of New York Press, 2003

External links

  • Foundation Source, Inc.
  • American Endowment Foundation.
  • The Foundation Center, a Clearinghouse of Information on the approximately 25,000 U.S. Foundations
  • Council on Foundations
  • U.S. Corporate Foundations
  • Canada Revenue Agency - Annual Registered Charity Information Returns

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