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Public Foundation

public foundation volunteers running on the grass

Definition Of Public Foundation

A Public Foundation is a charitable organization that must have less than 50% of its funding coming from a private entity. Its mission, moreover, is to help fight a cause, usually through donations (grants). Therefore, the primary goal to have a positive social impact

Behind the concept…

As they don’t have a unique source of funding, public foundations rely on fundraising. Their donators can be institutions, individuals, corporations as well as other foundations. None of them can give more than 50% of the total of the assets. They often have a tax-exemption and no minimum of their funds to give (the rules depend on the country).

What do they do exactly?

Their objective is to have a social or environmental impact. In order to do that, most of the public charities operate by conducting projects and being active on the ground. They can also fund the projects of other non-profits, but that is uncommon.

What can attract the donors?

There are different kinds of donors. Depending on which they are, the benefits aren’t the same. For all of them, when donating to a public foundation, donors can have tax deductions on their contribution. The amount depends on if they are individuals, foundations or corporations.

There is also a moral incentive. People, whether they are on a board of directors or acting for themselves, often want to do good.

Finally, for the corporations, institutions, governments, a donation can contribute to improving their brand image.

Useful Links

Community Foundations and Funding Requests Management
Institutional Philanthropy in Italy

Sources

Grantspace