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)