Companies of all sizes engage in corporate philanthropy as a means of giving back to the communities in which they operate. This includes financial contributions, product donations, in-kind services, and employee matching and volunteering. Our latest Industry Report showed that the companies run grant programs of all sizes, starting as low as $1000 awarded. A fraction of companies take advantage of the additional benefits that come from adding a corporate foundation to their philanthropic efforts.
What is a corporate foundation?
Technically, a corporate foundation is classified by the Internal Revenue Service as a type of 501(c)(3) public charity called a “private non-operating foundation.” The Internal Revenue Code does not distinguish corporate foundations from family foundations. Both are subject to the same regulations. From a practical stand point, however, there are differences in funding and governance. A corporate foundation is funded by a company, instead of an individual or family. And the board members of a corporate foundation are typically company executives.