What is the difference between a corporate foundation and a corporate giving program?
A corporate foundation is a wholly separate tax-exempt corporation that is legally distinct from the founding business corporation. The founding corporation bears no direct responsibility or liability for the foundation’s operating expenses, employees or actions. A corporate giving program is a grant-making and charitable giving vehicle established and administered from within the corporation, usually as part of its Community Affairs or Marketing Departments. Its operating costs are part of the corporation’s overhead and it is managed by employees of the corporation. Corporate giving programs are not endowed and derive their grantmaking funds annually from a share of the company’s pre-tax earnings.
