Types of Foundations

Family foundations are private foundations where the founding family retains control over grantmaking decisions. They account for the largest share of US foundations by count.

Independent private foundations are funded by a single source — typically a wealthy individual or small group. They must distribute at least 5% of assets annually and file IRS Form 990-PF.

Operating foundations run their own charitable programs and services rather than primarily making grants to other organizations. They must spend at least 85% of income directly on active programs.

Faith-based foundations are rooted in religious traditions and fund programs aligned with their spiritual mission — including education, social services, healthcare, and community development.

Community foundations pool donations from many donors to support causes in a specific geographic area. They often manage donor-advised funds and field-of-interest funds.

Corporate foundations are established and funded by companies to manage their charitable giving. Their grants often align with business interests and the communities where employees live and work.

Donor-advised fund (DAF) sponsors manage charitable accounts where donors contribute assets, receive an immediate tax deduction, and recommend grants to nonprofits over time.