Philanthropy Basics

In the United States, the term “philanthropy” is used to describe the granting of money to nonprofit organizations by foundations and corporations. This type of giving is often referred to as organized philanthropy or grantmaking.

What is a foundation?

A foundation is a nonprofit organization that supports charitable activities in order to serve the common good. Foundations are often created with endowments - money given by individuals, families or corporations. They generally make grants or operate programs with the income earned from investing the endowments.

For information on the Life Cycle of a Private Foundation click here: http://www.irs.gov/charities/charitable/article/0,,id=127912,00.html

What limits are there on foundation grantmaking?

How are foundations regulated?

Private foundations are governed by stricter regulations than public charities, which generally raise money from the public to operate institutions or programs. Both foundations and public charities might use the term “foundation” in their titles, but very different laws apply to each. The IRS requires that private foundations:

 

 

There are four basic types of grantmaking foundations:

Independent Foundations

Independent foundations are the most common type of private foundation. They are generally founded by an individual, a family or a group of individuals. They may be operated by the donor or members of the donor’s family - a type often referred to as a family foundation - or by an independent board.

Corporate Foundations*

A corporate (company-sponsored) foundation is a private foundation that derives its grantmaking funds primarily from the contributions of a profit-making business. The company-sponsored foundation often maintains close ties with the donor company, but it is a separate, legal organization, sometimes with its own endowment, and is subject to the same rules and regulations as other private foundations.

*Corporate Direct Giving Programs

Corporate Direct giving programs are not separately incorporated and do not adhere to private foundation laws or regulations or file a Form 990-PF. They enable the corporation to deduct up to ten percent of its pre-tax income for direct charitable contributions (this includes giving to the company’s foundation.) The average percentage is closer to one percent. They make various other kinds of donations, sometimes treated as business expenses, which are not necessarily included in giving statistics. They are often used as a supplement by the company to support programs that do not fall under the guidelines of the company-sponsored foundation. They do not have an endowment and they frequently include employee matching gifts and in-kind gifts as part of their grantmaking activities.

Community Foundations

A community foundation is a tax-exempt, nonprofit, autonomous, publicly supported, philanthropic institution composed primarily of permanent funds established by many donors for the long-term charitable benefit of the residents of a defined geographic area. Typically, a community foundation serves an area no larger than a state. Community foundations provide an array of services to donors who wish to establish endowed funds without incurring the administrative and legal costs of starting independent foundations. A similar type of foundation is the public foundation, which may provide direct charitable services to the public as other nonprofits do, but their primary focus is on grantmaking.

Operating Foundations

There is also a type of foundation that does not generally make grants, called an operating foundation. The majority of an operating foundation’s funds are expended to operate its own charitable programs.

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*New* Regional Philanthropy Calendar

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BIENNIAL REGIONAL CONFERENCE

Charting The Course: Moving Forward in Challenging Times

Astoria, Oregon

October 13-15th 2010


Learn more…

http://www.oldoregon.com/

Webinar: Scaling What Works from Grantmakers for Effective Organizations (GEO)

Introducing Scaling What Works: What is it?  Why should I care?  How do I get involved?

Tuesday, August 3, 2010
2:00 pm (EST)
Free to all grantmakers.

Reserve your Webinar seat now at:
https://www1.gotomeeting.com/register/228693801

Scaling What Works is the three-year initiative that will ensure funders and nonprofits have the tools, resources and skills needed to effectively increase the impact of community programs. During this informational session, Kathleen Enright, GEO’s President and CEO, will outline GEO’s plans for the project, describe how this project complements and supports the Social Innovation Fund, explain how this work fits into GEO’s primary programs, hear your interests and discuss how you can become more involved. There will also be plenty of time for Q&A.

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SOCIAL

Summer Social at the Schnitzer’s!

Hosted by Harold and Arlene Schnitzer through the Harold & Arlene Schnitzer CARE Foundation

Wednesday, August 11, 2010
5:00 pm - 7:00 pm

The Harold and Arlene Schnitzer CARE Foundation
1121 SW Salmon Street
Portland, OR 97205
Rooftop Terrace

Beverages and summer appetizers included.

(JavaScript must be enabled to view this email address) or call 503.226.6340

More details to follow!

 

CORPORATE FUNDERS LEARNING EXCHANGE

Continuing the Conversation

Sponsored by Pacific Power Foundation

7:30 am - 9:00 am
Thursday, September 2, 2010

Key Bank Officers, Pac West Building
1211 SW Fifth Avenue, Suite 300
Portland, OR 97204

$10.00 Members, $35.00 Non-Members
(JavaScript must be enabled to view this email address)or 503.226.6340

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Connecting the Dots: Health, Housing, and the Community Context

Presented by: Comprehensive Health Education Foundation, The Seattle Foundation, and Bullitt Foundation

September 14, 2010
11:30 am - 1:30 pm

Seattle Lung Association
2625 Third Avenue
Seattle, WA 98121

To register, email (JavaScript must be enabled to view this email address)

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