What types of foundations/grantmakers are there?
The U.S. government distinguishes between two main types of foundations: “private foundations” and “public charities.” PRIVATE FOUNDATIONS Private foundations are nongovernmental, nonprofit organizations with funds that usually come from a single source, such as an individual, family, or corporation. They are managed by their own trustees or directors, and established to maintain or aid charitable activities serving the common welfare, primarily through grantmaking. Additionally, because of their narrow base of support, private foundations are subject to federal laws and regulations intended to ensure that they serve the public good. These rules include, among other things, a minimum annual distribution requirement, an excise tax on investment income, limits on the proportion of a for-profit enterprise they may own, and restrictions on grantmaking for certain kinds of recipients and activities. In 2005, the nation’s private grantmaking foundations held $506 billion in assets and their
