Key differences between a private foundation, a family foundation, a corporate foundation, and a community foundation include the following:
Private foundations:
A private foundation has a different tax status than a community one. Private foundations are 501(c)(3)s while community foundations are classified as public charities (501(c)(3)s or 509(a)(1)s).
Private foundations may have specific donors and their trusted appointees, and the governing body of the organization has to approve everything: grant opportunities, funding requests, advocacy, and human services.
Family foundations:
Family-owned foundations are often private. They tend to be funded by a particular family’s endowment, and sometimes family members take an active role in running the foundation as well.
Community foundations:
A community foundation may be run similarly to a private foundation or employ an advisory committee. In a community foundation, the decision-making process for fundraising initiatives and funding options can vary, so it can be helpful to understand how your foundation funding works, along with any relevant existing grant programs.
Corporate foundations:
Typically, corporate foundations are established as separate legal entities from the corporation that sponsors them. However, there’s often a close relationship between the foundation and the corporation itself.