When people think of foundations, they think of them as grantmaking organizations. This article will address the different foundation types.
Generally, a grantmaking foundation is what is known as a private foundation. A private foundation typically is established by a single family or a company. It sets up its own corporate status and establishes its own tax exempt status before the Internal Revenue Service. As such, it also establishes its guidelines for making grants. Those guidelines may be written down and very firm. On the other hand, I've seen some foundations who have a "we know it [what we want to fund] when we see it" policy.
There are also operating foundations. These foundations operate much like a ministry organization. They may raise money for their activities as well.
It is also important to know that the term foundation has no defined legal definition. In some cases, you'll see some ministry organizations that call themselves foundations. They are clearly not grantmaking organizations. Instead, they are just like any other 501(c)(3). They seek to raise money, but they happen to use the term "foundation" in their name.
Finally, there are community foundations across the country. There are more than 600 community foundations. Most are focused on a geographic territory. There are approximately 30 plus Christian community foundations. For a listing of some of these Christian community foundations you can visit www.nationalchristian.com.
Some of these foundations offer grantmaking opportunities. Some of them offer the opportunity to be part of a ministry database that is made available to donors who are part of them. See, e.g., www.servantchristian.com.
A community foundation is typically made up of individual component funds called donor advised funds. It is much like the concept of a bank or a mutual fund. Individual donors may set up their own account, which operate in principle like a private foundation and make grants out of their fund. Additionally, some ministry organizations will set up ministry foundation accounts. They often do so so that they can receive gifts, particularly non cash gifts, into their account. See, e.g., www.iDonate.com.
Thus, the primary approaches for grants will be through the private foundation or Christian community foundation approach.
William High is the President of the Servant Christian Community Foundation (SCCF)--www.servantchristian.com. Christian Foundation Grants (www.christianfoundationgrants.com) is a subscription database of private foundations that offer grants to faith based organizations. www.iDonate.com is a service of SCCF that allows ministries to receive non cash gifts online.