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XEDITION

Board

A foundation is a non profit company that can help to support charitable activities so that they may help those in need. A foundation is normally created with donations or endowments, which is money given by families, corporations or as part of non-public philanthropy. Occasionally, this sort of foundation will run programs from the income that has been earned by investing endowments.

You will discover a number of foundations that have a good deal of discretion with regards to which of the charitable organizations to whom their grants might be given. Some, on the contrary, are very limited through the donors mandate and some will be just permitted to give funds to a particular cause. Still others have to limit the "grant making" to a particular geographical area.

Basically, you can find 3 types of grant making foundations: The Independent Foundation will be the one that's most often seen, of privately run organizations. They can be usually begun by a person, the family as well as groups of individuals and has to be run by a donor themselves or their family members; a type sometimes called a family foundation or one run by a third party independent board.

Next are Corporate Institutions and they are funded and created by a company as separate entities, overseen through the board of directors most often made up of officials in the company. A corporation may build private institutions with donations or endowments, make a contribution from a profit, or take several of both ways to provide foundation resources.

The foundation companies sometime run in-house programs, unlike the additional corporate businesses, and also are under total control of the company and are not necessary to abide through the same IRS rules. The third is a Public and/or Community Foundation, which is supported publicly and is funded by, and as a benefit to, a particular geographic region or community development.

Foundations are regulated by laws and rules that will be much stricter than they may be for public charities, that are generally funded by raising money from the general public in order to operate and run the programs and institutions. While both might use the term "foundation" within their title or name, very different regulations apply to each one.

The IRS has some specific regulations in relation to corporate and independent foundations. They can be required to pay at least 5% of the year-end fair market price of their assets. Since the Internal Revenue Service regards the foundation of public and/or community as a non-public charity they're not subject to the same laws as a corporate or independent foundation.1stleccommunitydevelopment-191102193612-
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