Glossary
Definition
Foundation
A legal entity created to provide funding for charitable causes.
A foundation is a non-profit organisation established to make grants and support charitable causes. Private foundations (like the Bill & Melinda Gates Foundation) are funded by individuals or families and must distribute at least 5% of their assets annually. Foundations are a common vehicle for billionaire philanthropy.
Frequently Asked Questions
How is a private foundation different from a charity?
A charity directly carries out programmes. A foundation primarily funds other organisations or projects. Foundations are subject to specific IRS rules including minimum distribution requirements and restrictions on self-dealing.