Frequently Asked Questions
Q: What is a private foundation?
A: A private foundation is a nongovernmental, nonprofit organization with funds and programs managed by its own trustees or directors.
Q: What is a payout requirement?
A: The payout requirement refers to the minimum amount that private foundations are legally required to expend for charitable purposes. In general, a private foundation must meet or exceed an annual payout requirement of five percent (5%) of the average market value of its total assets.
Q: What are the various types of foundations?
A: Community Foundation: A 501(C)3 organization that makes grants for charitable purposes in a specific community or region.
Corporate Foundation: A private foundation whose assets are derived primarily from the contributions of a for-profit business.
Family Foundation: An independent private foundation whose funds are derived from members of a single family. Family members often serve as officers or board members of family foundations and play a significant role in their grantmaking decisions.
Independent Foundation: A grantmaking organization usually classified by the IRS as a private foundation.
Operating Foundation: A 501(C)3 organization classified by the IRS as a private foundation whose primary purpose is to conduct research, social welfare, or other programs determined by its governing body or establishment charter. Operating may, on occasion, fund grants.
Q: What is an RFP?
A: A Request for Proposal (RFP) is a funder’s written announcement inviting proposals, usually for a grant program. The RFP contains project specifications and application procedures and deadlines. The Office of Foundation Relations (FR) serves as a clearing house for many RFPs from private foundations. FR and UDRI work together closely to make academic units, centers, departments, and faculty aware of appropriate funding opportunities.
Q: Should I contact the Office of Foundation Relations (OFR) or the Contracts and Grants Office (CGO) about my project?
A: Contact OFR if you believe there would be interest by private foundations. Contact CGO if you are applying for a government grant. Sponsored research proposals, both to foundations and to government agencies, require a completed Proposal Processing Form. (See Porches under Links / F / Faculty Proposal Processing Form)