foundations - A foundation is a legal entity that is...

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A foundation is a legal entity that is established as a nonprofit corporation or a charitable trust for the purpose of making grants to unrelated organizations or institutions, or to individuals for scientific, educational, cultural, religious, or other charitable purposes. (Unrelated means that they can only give to organizations that are not in any way connected to the grant-giving foundation. It they were to give to related organizations, this would constitute self-dealing and disqualify them from their foundation status). The definition above is a very broad IRS definition that covers private foundations and public foundations. Private Foundations and Public Foundations So what's the difference between a private foundation and a public foundation? Private foundations are of most interest to you when you seek financial support. Most of its funds will come from a single source—most often an individual, a corporation, or a family. A public foundation , this is actually another term for a public charity, gets its assets from multiple sources which can include private foundations, individuals, government agencies, and fees for its services. An easy way to remember is that a public foundation gets its funding from multiple public sources. Both private foundations and public foundations (or public charities) are required by the IRS to have 501(c)(3) status. Form 990 and 990PF The Internal Revenue Code not only has complex definitions of what constitutes various kinds of nonprofit organizations, but it also has requirements on the information they must make public. All foundations are nonprofit organizations and like other nonprofit 501(c)(3) organizations, they must file a Form 990 annually. This Form 990 lists board members, financial status, and grants made. In the case of private foundations (the kind you will solicit), the form they must fill out is designated as 990PF. It can be an excellent tool in your research for information on foundations that do not provide what you are looking for in their annual reports. So when information is scarce, check the 990PF. 'Not a Private Foundation' When you write a grant proposal, you'll probably be doing it on behalf of an organization that is defined by the IRS as 'not a private foundation'—I know, you think your organization is not a 'foundation' in the sense we usually use the word, but that's how the IRS defines you. (By way of explanation, the IRS determines 501(c)(3) status by various criteria, criteria that mostly concern how an organization gets its support. If an organization does not meet specific IRS criteria, it's determined to be 'not a private foundation'—in other words, the IRS defines organizations by what they are not.) The importance of knowing that your organization is probably in the 'not a private foundation status' is that it will have a letter certifying that it is 'not a private foundation'. When you apply to a foundation for funding, this letter certifying 'not a private foundation' must be
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This note was uploaded on 08/29/2011 for the course PUBLIC ADM 101 taught by Professor Staff during the Spring '11 term at UNF.

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foundations - A foundation is a legal entity that is...

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