Foundation Grant

A foundation is most often considered a public entity that operates on a not-for-profit basis and usually produces some sort of community-based activity, charitable works, or social awareness agenda. Foundations are not owned and operated by a branch of government but their operations do fall under government scrutiny.

One of the most widely associated activities of such an organization is the foundation grant programs that many of them offer as a routine part of operation. The purposes of the grants vary as widely as the focus of the individual foundation issuing it.

Many foundations are established as family-based organizations wherein the awarding of a foundation grant is based upon the mission of the collective family members. This type foundation often focuses on medical research, the arts and entertainment, and educational recipients.

A foundation may be established in similar fashion to a family trust that honors the works and wishes of a deceased family patriarch or matriarch. By establishing the foundation, the family legacy is carried on by way of foundation grant awards that continue many years after the founding member has died.

Another popular mission of many foundations is to issue foundation grants to advance scientific research and technologies. This type of endeavor can be enormously expensive, relying on one-of-a-kind equipment that must be designed and developed for a specific project, and might not even be feasible financially without the help of generous a foundation grant.

To become officially declared a foundation, certain criteria must be met, including a clearly stated purpose for every foundation grant awarded and the basis upon which it is expected to be spent.

Foundations do not have shareholders in their legal and financial structure but there is usually a board of directors which votes on important issues, such as to whom and how much a foundation grant is to be awarded. Some foundations have even larger governing bodies and may include an assembly that is allowed to vote and there may even be foundation members not intricately associated with the administrative, legal, or financial dealings of the foundation but who have voting privileges nevertheless.

Since many foundations are established for the purpose of charitable works, every financial action, including the issuance of a foundation grant, comes under scrutiny of the Internal Revenue Service (IRS) in the United States and the taxing arm of government for foundations established in other countries.