An Introduction to Trusts and Foundations
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Foundations and Trusts - what are they?
Foundations and trusts are charities with private, sustainable income. Trusts and foundations, in turn, make grants to help individuals and charities achieve their goals.
From a fundraiser’s point of view, the terms “trust” or “foundation” can often be used interchangeably. Both do the same thing, but the difference lies in the constitution and legal status.
Foundations and trusts independently decide, and are not influenced by political matters or trends. They decide what they want to accomplish and how they can benefit the community at a local or national scale.
The types of funding they offer
Foundations and trusts offer many types of funding, including:
Kickstart funding: To get a project started
Revenue funding: To cover running expenses and salaries
Capital financing: To pay for equipment or building costs
Project funding: To pay for items in a project budget. Sometimes, this may include a contribution towards overhead and management time.
Long-term funding: To provide funding for a number of years
What are the various types of foundations and trusts?
Foundations and trusts can take many forms, with different funding priorities. Some foundations are focused on a specific type of organisation, while others focus on specific themes. Others have a broader remit. While some trusts only give within a particular area, others can give nationwide. It’s important to understand the differences between trusts and foundations before you spend time researching them.
Family trusts can be established by family members to distribute personal family donations.
Trusts for companies
Private trusts and foundations are funded by private income. This is usually generated through investments. The interest is then donated to charity organisations in the form of a grant.
Funds for Livery companies
Public Appeal Trusts