Understanding Private Foundations
Private foundations are tax-exempt organizations defined under Section 501(c)(3) of the Internal Revenue Code that receive their primary funding from a single source — an individual, family, or corporation — and are required to distribute at least 5% of their investment assets annually in the form of grants and program-related investments. There are approximately 120,000 active private foundations in the United States, and they collectively distribute over $90 billion in grants per year.
Unlike federal grant programs with public solicitations and formal scoring rubrics, private foundations vary enormously in their application processes, priorities, and decision-making culture. Some publish open solicitations. Many are invitation-only. Some respond to cold letters of inquiry; others won't look at you unless you're introduced by a board member. Navigating this landscape requires research, patience, and relationship development alongside strong writing skills.
Types of Private Foundations
Independent Foundations
Independent foundations are funded by an individual or family and are the most common type. They range from small family foundations that make grants under $100,000 annually to giants like the Gates Foundation ($6+ billion in annual grants), the Walton Family Foundation ($1.2 billion/year), and the Bloomberg Family Foundation ($750 million/year). Independent foundations tend to have the most focused grantmaking strategies and the most staff, making them the most competitive but also the most transparent about their priorities.
Community Foundations
Community foundations serve specific geographic regions and manage charitable assets on behalf of many donors who establish donor-advised funds and designated funds. They are technically public charities, not private foundations, but they function similarly as grantmakers. Community foundations typically make grants to local nonprofits through competitive cycles and donor-directed giving. They are often the most accessible foundation funders for local organizations.
Corporate Foundations
Corporate foundations are funded by corporate parent companies and often align their grantmaking with their business interests, employee giving programs, and corporate social responsibility goals. Examples include the Walmart Foundation, Google.org, JPMorgan Chase Foundation, and the Wells Fargo Foundation. Corporate foundations tend to be more transactional in their grantmaking — they prioritize visibility, alignment with business objectives, and employee engagement opportunities alongside pure mission alignment.
Operating Foundations
Operating foundations (such as the Getty Foundation and various museum foundations) primarily operate their own programs rather than making grants to other organizations. When they do grant to outside organizations, it is typically for projects closely aligned with their operational mission.
How to Research Private Foundation Funders
IRS Form 990-PF
Every private foundation is required to file Form 990-PF annually with the IRS, and these filings are public record. The 990-PF lists every grant the foundation made in the prior year, including the grantee name, purpose, and amount. This is your most valuable research tool. Access 990s free at ProPublica Nonprofit Explorer (projects.propublica.org/nonprofits) or through the Foundation Center's 990 Finder. Read 3–5 years of 990s for any serious prospect: look for patterns in grantee type, geography, grant size, and project focus.
Candid (Foundation Directory)
Candid's Foundation Directory database is the most comprehensive paid resource for foundation research. Subscriptions start around $59/month and are worth it for organizations actively pursuing foundation grants. The directory includes foundation profiles, giving guidelines, contact information, and grant histories searchable by funder name, geography, and subject area.
Foundation Websites
Large foundations maintain detailed websites with current priorities, guidelines, and past grant lists. Mid-size and small foundations often have minimal web presence — 990 research is your primary tool for these.
The Letter of Inquiry (LOI)
Many private foundations require a letter of inquiry as the first step, before reviewing a full proposal. The LOI is typically 1–3 pages and should answer four questions:
- What problem are you solving, for whom, where? Two sentences maximum. Local data if available.
- What will you do with this grant? Describe the specific program or project, not your entire organization. Be concrete about activities, timeline, and who is doing the work.
- What outcomes will result? Name 2–3 measurable outcomes. "30 youth will earn industry credentials and 80% will be placed in full-time employment within 90 days of completion" is an outcome. "Improve youth employment prospects" is not.
- What are you asking for? Specify the requested amount and time period. "We are requesting $75,000 over 12 months to support the second year of our welding apprenticeship program" is a complete ask.
LOIs should be tailored to each funder — not copied from your general case statement. Reference the funder's specific priorities, past grantees if relevant, and why your work fits their current strategy.
Building Relationships With Foundation Program Officers
Program officers are the staff who evaluate grants at foundations large enough to have dedicated staff (typically those with $10M+ in assets). They are the most important people in your foundation fundraising practice. Their job is to identify high-quality grantees, and they appreciate organizations that make their job easier.
- Request a pre-application conversation: Most program officers will take a 20-minute call to discuss whether your work fits their program. Use this to confirm fit before investing time in an application. If they say your work doesn't fit, believe them and ask if they know other funders who might be a better match.
- Send brief updates between grant cycles: One-page "how the program is going" updates keep you on the program officer's radar without being burdensome. Attach a one-data-point outcome you're proud of.
- Invite site visits: Foundations that make substantial grants often want to see programs in action. Proactively invite program officers for site visits — seeing your work firsthand is more persuasive than any application narrative.
Common Reasons Foundation Proposals Are Rejected
- Program does not align with current foundation priorities (most common reason)
- Organization is too small or too large for the funder's typical grant range
- Geography does not match — the funder focuses on a region your work doesn't serve
- No prior relationship with the foundation when one was expected
- Proposal requests operating support when the funder only funds specific projects
- Financial statements raise concerns (deficit, high overhead, irregular audit)
- Outcomes are not clearly defined or not measurable
Find Private Foundation Prospects Efficiently
Manually researching hundreds of private foundations to identify your best prospects is the most time-intensive part of foundation fundraising. FindGrants.io indexes private foundation grant opportunities alongside federal and state programs, filtering by organization type, focus area, award size, and geographic priority. Enter your profile once and see which foundations are most likely to fund your work — so you spend your time on relationships and writing, not on research.