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Operating private organizations

This essay focuses on Operating private organizations. Such foundations are not subject to distribution requirements. But they must spend a certain percentage of their income each year on their charitable purposes.

Operating private organizations

Class: Foundations of Marketing and Economics The Term Paper’s topic is: “The Impact of COVID-19 on the Economy”  Important instructions to remember:  1. 15 pages minimum double-spaced 2. APA format 3. 5 sources minimum: 3 of the main sources MUST be a professional journal article. *Please see attached EBSCOHOST login instructions.

4. The 3 key principal journal articles must be copied and turn in with the paper (IMPORTANT).  Or please let me know where you found them, which website, or EBSCOHOST, etc..  5. Cite all work with APA format bibliography A more detail instructions is attach.  Also instructions for EBSCOHOST login is also attached.  Thank you!

There are two subgroups of private foundations:

Operating private organizations set up their own programs to achieve their charitable goals directly. They may also make some grants to other organizations. An operating foundation could be a think tank, a museum, or a research group. Such foundations are not subject to distribution requirements. But they must spend a certain percentage of their income each year on their charitable purposes.

One example of a private operating foundation is the  J. Paul Getty Trust. Found by Jean Paul Getty from an oil fortune. The Trust runs its own programs to promote understanding and preservation of the visual arts, especially in California. The Trust funds The J PaulGetty Museum, Research Institute, Conservation Institute, and the Getty Foundation. The Institute is one of the five most wealthy foundations in the US.

Private companies make grants to other charitable organizations that then indirectly achieve the foundation’s goals.

These are the foundations that we are most familiar with and to whom charities send their grant applications. Grant-making foundations must distribute a certain percentage. The value of their endowment each year to other organizations.

Perhaps the best known of this type, as well as the largest foundation in the US, is the Bill and Melinda Gates Foundation. Found by Bill Gates from his Microsoft fortune. The Gates Foundation focuses on making grants in the areas of health and poverty in the developing world

A corporate foundation is a private foundation that derives its grant. Making funds primarily from the contributions of a profit-making business.

The company-sponsored foundation often maintains close ties with the donor company.

 But it is a separate, legal organization, sometimes with its own endowment. And is subject to the same rules and regulations as other private foundations.

Examples of large, well-known corporate foundations include the Walmart Foundation and the Ford Motor Company Fund.

According to the Foundation Center, there are more than 2,600 corporate foundations. In the United States with total corporate giving amounting to $5.5 billion annually (2013).

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