A foundation is often confused with a charitable or non-profit organization. Charities operate from donations and often have volunteer workers. They usually have a specific goal in mind, such as feeding hungry people or providing services to those who cannot afford them, but all charities are dependent upon donations. A Non-profit organization may or may not be categorized as a charity, but all organizations with this designation do not operate to make a profit.
How do foundations differ?
Foundations do not attempt to make a profit and do not operate as charitable organizations. They are simply organisations that have money, which is used to fund various groups. Although a foundation may give money to a charity, other types of organizations benefit from funding from a foundation.
Foundations fund new charities that they create.
A foundation may give to a charity, but it is more common for a foundation to create a charity and then fund it. This is because the man or woman who created the foundation may have a particular cause they want to support. It may be a disease they want to see more research done for, or perhaps an area of suffering they see in society that needs a charity to address. There are many problems in society, and foundations can address problems that few, if any, charities have addressed in the past.
Foundations fund public policy organizations
Many foundations will create a think tank that is composed of men and women who are attempting to develop solutions to problems in society. A government often implements these solutions, so this is the reason for funding organizations such as think tanks: not only to develop solutions but also to advocate for their implementation.
Foundations fund the fine arts.
Whether it is an orchestra, sculpture, dance or paintings, foundations are well known for providing grant money to organizations promoting the arts in the United States. Many organizations cannot operate without outside help. This includes museums and art galleries that need the money to help provide art exhibitions for new and old artists throughout the country and the world.
What a particular foundation supports has a lot to do with its founder. Foundations will always reflect the values and interests of the man or woman who started the organization. In some cases, the foundation will have a narrow focus, while others may provide a range of support with its money. One example of this type of foundation is the Rosenkranz Foundation. Created by Robert Rosenkranz , it funds organisations devoted to public policy and those involved in higher education and the arts.