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Knowledge base

What is a Foundation?

Broadly speaking, a foundation is a nonprofit corporation or a charitable trust that makes grants to organizations, institutions, or individuals for charitable purposes such as science, education, culture, and religion. There are two foundation types: private foundations and grantmaking public charities.

Knowledge base

What is the difference between a private foundation and a public charity?

Candid defines a private foundation as a nongovernmental, nonprofit organization having a principal fund managed by its own trustees or directors. Public charities generally derive their funding or support primarily from the public, receiving grants from individuals, government, and private foundations. Grantseekers should know the difference.

Knowledge base

How do I learn about dissolving a private foundation?

Most foundations are set up to have a perpetual life-span, spending out only the interests from their investments while keeping the initial endowment intact. Other foundations choose to have a limited life-span. Regardless of the reason for the termination, foundations dissolve by "spending down" their assets in compliance with both state and federal law.

Knowledge base

How can my organization find other grantmakers or potential grantees working in our areas of interest?

It is always a good idea to know about other organizations and funders working in the same areas as you. You may wish to collaborate, check out an innovative program, or model a grant after another organization’s efforts. This is also a good way to connect with thought leaders in your areas of interest.

Knowledge base

How can my foundation improve its transparency practices?

Because transparency is so critical to improving philanthropy, Candid has a number of tools designed to help funders achieve greater levels of transparency in a variety of contexts, including improving overall institutional transparency, collective sector data, grants data, and overall sector knowledge.