Corporate Foundation Advantages

Corporate FoundationsMany companies start a corporate foundation to improve the impact and effectiveness of their philanthropic activities—while also mitigating the company’s tax burden.

Greater Tax Deductibility

A corporate foundation can engage in charitable activities that would not be tax deductible if handled directly by your company, such as scholarships, grants to individuals for disaster relief and economic hardship, and international giving.

Consistent Level of Giving

Corporate foundations can allow for a more consistent level of giving, building up a reserve when company profits are high that can be tapped in less profitable years.

Centralized Accountability

Creating a separate legal entity with a corporate foundation centralizes accountability for your company’s philanthropic activities and encourages strategic and tactical goal setting.

Enhanced Company Image

When named for your company, the foundation’s charitable activities reflect positively on the company image.

Foundation Creation

Foundation Source will have your new corporate foundation up and running in less than a week. There’s just three steps for you—we take care of the rest.

1. Choose a name for your corporate foundation.
You can name your corporate foundation after your company or something aligned with your brand.

2. Complete the brief foundation set-up questionnaire.
This questionnaire tells us how your corporate foundation will be funded and where the investment account will reside.

3. Fund your foundation and start giving!
Endow your foundation with a single lump sum or choose to fund it annually based on company profits.

Management Services

We’ll make sure your corporate foundation runs smoothly and effectively.

Experts on Call, Not on Payroll

Because our tax, legal, administrative, and philanthropic experts serve as your virtual staff, you get their top-flight support for a fraction of the cost of bringing comparable staffing in-house.

An End to Busywork

We handle all of your foundation’s transactions (and keep meticulous records). We prepare and file all your foundation tax returns, and take care of the financial and regulatory reporting.

Compliance Monitoring by Top Professionals

Running a corporate foundation without running afoul of the IRS requires a thorough understanding of complex IRS rules and regulations. Should we spot potential compliance issues with your foundation’s activities, we alert you and help you make informed decisions about how best to move forward.

  • Verify grantee’s 501(c)(3) public charity status
  • Provide USA PATRIOT Act due diligence
  • Identify supporting organizations
  • Monitor “Advance Ruling” expirations
  • Monitor grants and expenses to help prevent:
    • Self-dealing
    • Jeopardizing investments
    • Taxable expenditures
    • Excess business holdings, etc.
  • Monitor affiliations with other nonprofits
  • Track substantial contributors

A Technology Platform Built Exclusively for Private Foundations

Connect with your foundation anytime, anywhere, by logging into the secure, web-based console provided by Foundation Source. Developed specifically for the needs of private foundations, it simplifies foundation control, communication, and collaboration.

A Full Range of Philanthropic Options

We’ve streamlined traditionally complex processes, making it easier for your foundation to:

  • Grant directly to individuals for disaster relief and hardship assistance
  • Make program-related investments, loans, and equity investments
  • Award scholarships
  • Grant internationally
  • Run charitable programs

An Instant Network of Foundation Peers

As a Foundation Source client, you become part of a community of 1,400 foundations. You’ll gain access to virtual and in-person events where you can share experiences and best practices, meet with experts and sector leaders, and connect with peers who share your interests and goals.