A Beginner’s Guide to Starting Your Own Foundation

The following is a beginner’s guide to starting your own foundation. Yes, it may seem like a monumental task. However, if you break it down into manageable parts, forming a Foundation can be successfully accomplished. GrantWatch wants to help in this effort by putting a little spin on the subject. We are providing a comprehensive list of foundation-sponsored grants. To be clear, these are the foundations who sponsor nonprofits, individuals, and small businesses. In fact, GrantWatch provides a separate tab at the top of its homepage specifically for foundation grants. Listed there are over 4,000 Foundation grants from which to choose!

What Do You Need to Do to Start a Foundation?

Stage 1: Preformation Planning. Before you begin, there are several questions you should consider to help you decide which type of foundation would best suit the needs of the new organization.

Why are you forming this organization? Who will do the work? Who will donate the foundation start-up capital? How will the foundation sustain itself? Who will serve on the board of directors and who will be the officers? How much administration and management do you wish to take on yourself? How much do you want to delegate? What degree of control do you want over the funds? What are the tax consequences?

Answering questions as the ones listed above can help you and your advisors determine which type of charitable organization or giving vehicle is right for you.

Stage 2: Formation. It is essential for the donor or the donor’s advisor to comprehend – at the outset – the basic legal rules that govern the formation and regulate the activities of foundations. Complete the process under state law. However, requirements vary from state to state. First, you must choose what legal form your foundation will take. Your options are either a trust or a corporation.

Stage 3: IRS Recognition. So, your organization is formed under state law. The next step is typically for the organization’s leaders to seek recognition from the IRS as a tax-exempt charity. Such recognition means that the organization will not have to pay federal tax on its income. Additionally, the organization will be eligible to receive tax-deductible contributions. For most organizations, this process involves submitting IRS Form 1023. Application for Exemption under Section 501(c)(3) of the Internal Revenue Code.

cof.org (Council on Foundations) “Starting a Foundation“

In summation, below are some foundation grants currently available.

Foundation Grants, Opportunities, and Awards

1. To begin, in-kind grants of donated materials to nonprofits that strive to improve their communities.
2. In addition, grants of up to $7,500 to nonprofit organizations and schools to improve educational outcomes for individuals with autism.
3. Award of $2,500 to an individual to recognize their contributions to the field of mental health.
4. Grants of up to $500 to K-12 classroom teachers and enrichment program directors to enhance educational opportunities. To illustrate, this program supports excellence and creativity in the teaching profession.
5. Finally, an opportunity for composers to participate in a long-term grant and mentorship program for professional development. Additionally, funding is for film composers from underrepresented groups.

Fellowships, In-kind Donations, and Additional Foundation Grants

1. To continue, in-kind support to schools for recreational activities. Specifically, the support implements a bicycle riding program in an elementary school.
2. Also, grants of up to $15,000 to nonprofit organizations. Funding addresses the needs of local communities impacted by the Coronavirus (COVID-19).
3. Next, in-kind donations of supplies to nonprofit organizations to support oral health programs. Furthermore, this program enhances oral health for all state residents by providing supplies such as floss, toothpaste, and toothbrushes.
4. In addition, fellowships of up to $2,000 to individuals in eligible areas. Participants will take part in an experience that fosters personal development. The program inspires young women.
5. To conclude, grants of up to $20,000 to farmer’s markets, farm stands, and community-based agricultural groups. In brief, funding incentivizes the launch or expansion of a matching program.

In summation, we hope this information will be of help in your efforts to begin and fund a foundation!

About GrantWatch

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