A foundation grant is funding awarded by a private or community foundation — a non-profit organization established to distribute charitable funds. In the United States, foundations are required by IRS rules to distribute at least 5 % of their net investment assets annually as qualifying charitable distributions. This generates tens of billions of dollars in grant funding every year, primarily to non-profit organizations.
This page covers how U.S. foundations work, who they fund, the largest national funders, and how to apply.
How foundation grants work
There are two main types of grant-making foundation:
Private foundations
Funded by a single individual, family, or corporation. Examples: the Bill & Melinda Gates Foundation, the Ford Foundation, the Walton Family Foundation. Private foundations are governed by IRS rules under Section 4940–4948 of the Internal Revenue Code and must meet the 5 % annual distribution requirement.
Community foundations
Pooled charitable funds from many donors in a geographic area, governed for the benefit of that community. Examples: the Silicon Valley Community Foundation, the Chicago Community Trust, the New York Community Trust. Community foundations typically operate as 501(c)(3) public charities and allow donors to recommend grants through donor-advised funds.
A separate category — operating foundations — runs their own charitable programs rather than primarily making grants. Examples include the J. Paul Getty Trust.
Who foundations fund
The large majority of foundation grants go to:
- Public charities (
501(c)(3)non-profit organizations) - Universities, hospitals, and research institutions
- Schools and school districts
- Government agencies (sometimes, for specific programs)
- Tribes and tribal organizations
Grants directly to individuals are far less common but do exist:
- Fellowships (research, arts, journalism)
- Scholarships (typically administered via universities or community foundations)
- Disaster and emergency assistance (for individuals affected by qualifying events)
- Artist grants (often via state arts councils with foundation pass-through)
If you are an individual, expect that most foundation funding will require either a non-profit fiscal sponsor or a fellowship-style competitive application.
Major U.S. foundations to know
The dollar figures and asset estimates below are illustrative — check each foundation's most recent annual report for current data.
- Bill & Melinda Gates Foundation — global health, development, U.S. education, agriculture. One of the world's largest foundations by assets.
- Ford Foundation — social justice, civic engagement, gender, racial, and economic equity.
- Robert Wood Johnson Foundation — health and health-care issues in the U.S.
- William and Flora Hewlett Foundation — education, environment, performing arts, global development.
- W.K. Kellogg Foundation — children, families, and equitable communities.
- The Lilly Endowment — religion, education, community development (largely in Indiana).
- MacArthur Foundation — journalism, criminal justice, climate, and the well-known "MacArthur Fellows" individual grants.
- Rockefeller Foundation — global development, food, health, climate.
- Walton Family Foundation — K-12 education reform, environment, home region.
- Carnegie Corporation of New York — education, democracy, international peace.
- The David and Lucile Packard Foundation — children, families, environment, science.
- Andrew W. Mellon Foundation — arts and humanities, higher education.
This is not exhaustive — Candid's Foundation Directory lists tens of thousands of U.S. foundations searchable by focus area and geography. Free access is available at many public libraries.
Community foundations
If you are seeking funding for local work, your local community foundation is often the most accessible foundation funder. Almost every metropolitan area in the U.S. has one. Find yours via the Council on Foundations Community Foundation locator.
Community foundations typically offer:
- Competitive community-impact grants for local non-profits
- Donor-advised fund recommendations (individual donors recommend grants)
- Field-of-interest funds for specific causes (arts, environment, education)
- Scholarship funds for local students
Corporate foundations
Many large companies operate a separate corporate foundation that makes grants in their communities or industries. Examples: the Walmart Foundation, the Bank of America Charitable Foundation, the Coca-Cola Foundation, the Google.org program. These are distinct from corporate direct-giving programs but function similarly to other foundations.
How to apply
- Identify the right funders. Use Candid (free at most public libraries), foundation websites directly, and our Federal Grants and Business Grants pages for related programs.
- Confirm eligibility and alignment. Foundations publish their funding priorities and geographic focus. Apply only when there is a clear fit.
- Submit a letter of inquiry (LOI) if the foundation requires one. Most large foundations use a two-stage process: LOI first, then full proposal by invitation.
- If invited, prepare the full proposal following the foundation's guidelines exactly. See our Grant Writing guide.
- Steward the relationship. Foundations fund people they trust — punctual reports, honest communication, and program follow-through make repeat funding more likely.
There is no application fee for legitimate foundation grants.
Common questions
Can individuals apply directly to foundations? Some foundations have programs for individuals (fellowships, artist grants, scholarships). Most do not. Many individual applicants succeed by working through a non-profit fiscal sponsor.
How long is the decision process? 30–90 days for an LOI decision; 60–180 days for a full proposal decision. Plan accordingly.
Are foundation grants taxable?
Grants to 501(c)(3) non-profit organizations are not taxable to the organization. Grants to individuals may or may not be taxable depending on the use and the recipient's situation. Consult a tax professional and IRS guidance on grants and scholarships.
What is the difference between a private foundation and a public charity?
A private foundation is funded by a small number of sources (often one family or company) and exists primarily to make grants. A public charity (501(c)(3)) is broadly supported and typically delivers programs directly. Both are tax-exempt but governed by different IRS rules.
In this section
- Fulbright Foundation grants — international academic exchange
- Grant writing and Grant proposal — what foundations expect in an application
- Grant resources and Grant sources — directories of funders