They generally make grants or operate programs with the income earned from investing the endowments. They are generally founded by an individual, a family or a group of individuals. Corporate Foundations Corporate foundations are created and funded by companies as separate legal entities, operated by a board of directors that is usually comprised of company officials. Corporations may establish private foundations with endowments, make periodic contributions from profits, or combine both methods to provide a foundation's resources. Some companies operate in-house corporate giving programs, which unlike corporate foundations are under the full control of the company and are not required by law to follow the same IRS regulations.
Many corporations maintain both a foundation and a corporate giving program.
They receive their funds from a variety of individual donors, and provide a vehicle for donors to establish endowed funds without incurring the costs of starting a foundation. There is also a type of foundation that does not generally make grants, called an operating foundation. The majority of an operating foundation's funds are expended to operate its own charitable programs. Some foundations have broad discretion regarding the charitable causes to which their grants can be directed. Foundations are governed by stricter regulations than public charities, which generally raise money from the public to operate institutions or programs.