What is Nonprofit?
This is a charitable organization with a specific
social goal that uses its revenues and surplus to
fund its operations rather than benefitting the
organizations’ members, shareholders, employees
or leaders. The run-over profits are channeled
further to its goals. Nonprofits receive donations
from the government, foundations, institutions,
and individuals, just to name a few. These funds
are then directed to the set charitable work. They
can operate in research, religious, education or
even scientific settings, and are tax exempt.
What is Foundation?
This is a charitable organization that sources funds
from its founders, which could be a corporate
entity or a family. The money is then invested and
the proceeds are channeled towards its charitable
activities. Foundations also donate funds to other
nonprofit organizations as grants or gifts. Although
they do not qualify as public charities, some
foundations receive donations while others do not.
 Types of foundations include
 Operating foundations- This is a
foundation that undertakes charitable work and
distributes funds to its existing programs for
charity, which must be in a sustaining and
continuing fashion.
 Non operating foundations- As the
most common type of foundations, this is a
foundation that grants or distributes money to
other charitable organizations.
 Private foundations- This is a foundation
controlled and managed by a corporation,
family or individual.
 Public foundations- These are foundations that
rely on the private foundations, corporations and
the government for funding.
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