A Foundation is a type of philanthropic
organization set up by either individuals or institutions as a legal
entity (either as a corporation or trust) with the purpose of
distributing grants to support causes in line with the goals of the
foundation.
In civil law jurisdictions, the foundation finds its source in
institutions of medieval times when a patron would establish a
foundation to endow a monastery or other religious institution in
perpetuity.
The foundation has a distinct patrimony independent of its founder and
if it is not a moral person, it is considered to be a social trust.
There are several types of foundations, including family foundations,
corporate foundations and community foundations. Community foundations
are public charities established in communities throughout the world
(there are about 700 in the U.S.) to support community efforts.
Frequently, these community foundations have both funds to be used at
the discretion of the board of directors and other, specialized funds
established by individuals, families, businesses, and nonprofit groups
at these foundations into which they contribute a variety of assets
(cash and stock being among the most popular). These assets are invested
and grow over time. While there are many different kinds of funds that
can be established, among the most popular are donor advised funds.
These enable those who established them to contribute assets into the
funds at any time, and then they can recommend that grants be made from
the fund to qualified nonprofit groups in any amount and at any time in
the future--anywhere in the world. Community foundations also work with
people to help them implement charitable giving as part of their estate
plans--e.g., through a bequest.
