However, the foundation's board of directors will likely be appointed for their community contacts and fundraising abilities. Because the foundation is made up of community leaders, their appeal for funds can carry more credibility with a potential donor than a request from an official of the institution. Control of the foundation by the institution can be managed in many ways. One method is to have membership in the foundation determined by the institution's governors. Articles of incorporation can also stipulate the foundation's purpose as financially aiding and supporting educational programs approved and conducted by the institution.
People can easily distinguish between the separate identities of the foundation and the institution.
This can be important to a donor organization or government agency that cannot make grants directly to a public educational institution. The foundation has much more freedom and maneuverability to negotiate deals with potential donors, since as a separate legal and accounting entity from the institution, it is not restricted to the same limitations as the institution. The funds it raises are more flexible, and are independent of the rules and guidelines set for a government body. The foundation's accounts are separate from the institution, so it can allow funds not used in one fiscal year to be applied to the next. Any surplus resulting from successful fundraising does not come under the scrutiny of the provincial treasurer or departments of higher education, as do those of the institution.