{"id":23000,"date":"2025-06-30T15:11:44","date_gmt":"2025-06-30T22:11:44","guid":{"rendered":"http:\/\/localhost:10053\/what-is-a-corporate-foundation\/"},"modified":"2025-06-30T18:51:06","modified_gmt":"2025-07-01T01:51:06","slug":"what-is-a-corporate-foundation","status":"publish","type":"post","link":"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-a-corporate-foundation","title":{"rendered":"What Is a Corporate Foundation?"},"content":{"rendered":"\n<div style=\"margin-bottom:2%\" class=\"wp-block-genesis-blocks-gb-container gb-block-container\"><div class=\"gb-container-inside\"><div class=\"gb-container-content\">\n<div class=\"wp-block-genesis-blocks-gb-columns gb-layout-columns-3 gb-3-col-equal\"><div class=\"gb-layout-column-wrap gb-block-layout-column-gap-2 gb-is-responsive-column\">\n<div class=\"wp-block-genesis-blocks-gb-column gb-block-layout-column gb-is-vertically-aligned-top\"><div class=\"gb-block-layout-column-inner\">\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"400\" src=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/learning-center-icon-new.png\" alt=\"\" class=\"wp-image-23311\" style=\"width:150px\" srcset=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/learning-center-icon-new.png 500w, https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/learning-center-icon-new-300x240.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-genesis-blocks-gb-column gb-block-layout-column gb-is-vertically-aligned-top\"><div class=\"gb-block-layout-column-inner\"><div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"381\" src=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/explainer-logo-for-detail-page.png\" alt=\"\" class=\"wp-image-23078\" style=\"width:300px\" srcset=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/explainer-logo-for-detail-page.png 750w, https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/explainer-logo-for-detail-page-300x152.png 300w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-genesis-blocks-gb-column gb-block-layout-column gb-is-vertically-aligned-top\"><div class=\"gb-block-layout-column-inner\" style=\"text-align:center\">\n<p><\/p>\n<\/div><\/div>\n<\/div><\/div>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-genesis-blocks-gb-container gb-block-container\"><div class=\"gb-container-inside\"><div class=\"gb-container-content\"><h1 class=\"wp-block-post-title\">What Is a Corporate Foundation?<\/h1>\n\n\n<p>A corporate foundation is the charitable vehicle of a for-profit corporation. It is a <a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-a-private-foundation\" target=\"_blank\" rel=\"noreferrer noopener\">private foundation<\/a>, but instead of the money being contributed by an individual or family, a corporate foundation is funded by a business.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A private foundation whose money is contributed by a for-profit business.<\/li>\n\n\n\n<li>Also known as a company-sponsored foundation.<\/li>\n\n\n\n<li>They rarely have an endowment.<\/li>\n\n\n\n<li>Grantmaking is often tied to the company\u2019s area of business or the geographic locations where they maintain operations.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How do corporate foundations work?<\/strong><\/h2>\n\n\n\n<p>Corporations work much like other <a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-a-private-foundation\" target=\"_blank\" rel=\"noreferrer noopener\">private foundations<\/a>, in the sense that they are 501c3 organizations that make grants. The difference is in where the money comes from, who or what defines the foundation\u2019s charitable mission, and (typically) lack of an <a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-an-endowment\" target=\"_blank\" rel=\"noreferrer noopener\">endowment<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>How corporate foundations are funded<\/strong><\/h4>\n\n\n\n<p>With a corporate foundation, the funding comes from a for-profit business. Basically, Company A makes a tax-deductible contribution to the Company A Foundation. The foundation then makes grants to nonprofits.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>What guides corporate giving<\/strong><\/h4>\n\n\n\n<p>Corporate giving often aligns with a company\u2019s mission or aims to give back to the community where the company is based. For example, the <a href=\"https:\/\/www.insidephilanthropy.com\/find-a-grant\/grants-c\/cargill-inc\" target=\"_blank\" rel=\"noreferrer noopener\">Cargill Inc. Foundation<\/a> focuses its environmental, health and development giving in areas where the company has a business presence.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Corporate giving is usually based on corporate earnings<\/strong><\/h4>\n\n\n\n<p>Unlike <a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-a-private-foundation\" target=\"_blank\" rel=\"noreferrer noopener\">private independent foundations<\/a>, corporate foundations typically don\u2019t have an <a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-an-endowment\" target=\"_blank\" rel=\"noreferrer noopener\">endowment<\/a>. Instead, they rely on corporate earnings, which can fluctuate significantly year over year.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Relationship between a corporation and its corporate foundation<\/strong><\/h4>\n\n\n\n<p>The corporation that funds a corporate foundation usually has a close relationship with the foundation, but the foundation is a separate legal entity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is the role of corporate giving in philanthropy? <\/strong><\/h2>\n\n\n\n<p>U.S. corporations gave more than $36 billion in 2023, according to Giving USA\u2019s 2024 <a href=\"https:\/\/givingusa.org\/5-takeaways-and-next-steps-from-the-giving-usa-2024-report\/\" target=\"_blank\" rel=\"noreferrer noopener\">report<\/a>. While corporate giving represents a small share of overall philanthropy, this form of giving has grown <a href=\"https:\/\/givingusa.org\/5-takeaways-and-next-steps-from-the-giving-usa-2024-report\/\" target=\"_blank\" rel=\"noreferrer noopener\">faster than philanthropy as a whole<\/a> in the last five years.&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>About 7% of U.S. charitable giving came from corporations in 2023, according to <a href=\"https:\/\/givingusa.org\/5-takeaways-and-next-steps-from-the-giving-usa-2024-report\/\" target=\"_blank\" rel=\"noreferrer noopener\">Giving USA<\/a>.&nbsp;<\/li>\n\n\n\n<li>Some of the largest companies in the world \u2014 in fields such as banking and finance, pharmaceuticals and telecommunications \u2014 give significantly through corporate foundations.&nbsp;<\/li>\n\n\n\n<li>Small and midsized companies are increasingly participating in corporate philanthropy as well, <a href=\"https:\/\/doublethedonation.com\/trends-in-corporate-philanthropy\/\" target=\"_blank\" rel=\"noreferrer noopener\">reports<\/a> Double the Donation, a platform for corporate matching-gift programs.&nbsp;&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Corporate giving is more influential in some philanthropic spaces than others. For example, the <a href=\"https:\/\/www.insidephilanthropy.com\/find-a-grant\/grants-g\/gilead-foundation-and-corporate-fundingnbsp\" target=\"_blank\" rel=\"noreferrer noopener\">Gilead Foundation<\/a> \u2013 the philanthropic arm of the biopharmaceutical company Gilead Sciences \u2013 is a major health funder and one of the top funders of <a href=\"https:\/\/www.insidephilanthropy.com\/find-a-grant\/fundraising-for-lgbt\" target=\"_blank\" rel=\"noreferrer noopener\">LGBTQ<\/a> issues. Meanwhile, several large banks\u2019 corporate giving programs are sponsors of <a href=\"https:\/\/www.insidephilanthropy.com\/find-a-grant\/fundraising-for-the-fine-arts\" target=\"_blank\" rel=\"noreferrer noopener\">art museums<\/a>. Corporate foundations are leading funders of <a href=\"https:\/\/www.insidephilanthropy.com\/find-a-grant\/grants-for-animals\" target=\"_blank\" rel=\"noreferrer noopener\">animal protection<\/a>, especially via funds raised from customer check-out donations at pet stores.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How do corporations give philanthropically? <\/strong><\/h2>\n\n\n\n<p>Making grants from a corporate foundation is just one way for corporations to make charitable contributions. Additional forms of corporate philanthropy include:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Corporate giving programs<\/strong><\/h4>\n\n\n\n<p>In addition to, or instead of, establishing a corporate foundation, a corporation can make charitable gifts directly to nonprofits through a corporate giving program.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Corporate matching gift programs<\/strong><\/h4>\n\n\n\n<p>Through corporate matching gift programs, companies match employees\u2019 donations to nonprofits, doubling the impact of employee giving. Sixty-five percent of Forbes 500 companies offer matching gift programs, and an estimated $2\u20133 billion is donated through matching gift programs every year, according to <a href=\"https:\/\/doublethedonation.com\/matching-gift-statistics\/\" target=\"_blank\" rel=\"noreferrer noopener\">Double the Donation<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Corporate sponsorships<\/strong><\/h4>\n\n\n\n<p>Another common way for corporations to give to nonprofits is through corporate sponsorship. Sponsorships generally come with public acknowledgment of the company\u2019s support.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For example, a corporation might sponsor opening night of a nonprofit theater\u2019s season. In exchange for a financial or <a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-are-in-kind-contributions\" target=\"_blank\" rel=\"noreferrer noopener\">in-kind contribution<\/a>, the company\u2019s logo will appear on the event step-and-repeat or in the program.&nbsp;<\/li>\n\n\n\n<li>Sponsorships of high-visibility events have been a key way that corporations support nonprofits, though there are signs corporations are <a href=\"https:\/\/www.cnbc.com\/2025\/04\/27\/companies-lgbtq-pride-festivals.html\" target=\"_blank\" rel=\"noreferrer noopener\">retreating<\/a> from sponsoring Pride festivals amid Trump\u2019s attacks on equity and inclusion after many years of being major supporters.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>In-kind donations<\/strong><\/h4>\n\n\n\n<p>Companies large and small support nonprofits via <a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-are-in-kind-contributions\" target=\"_blank\" rel=\"noreferrer noopener\">in-kind contributions<\/a> of products, expertise, or services. For instance, pharmaceutical companies\u2019 giving is often in the form of donated products. At a smaller scale, a local restaurant might donate food for a nonprofit\u2019s fundraiser or volunteer day.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Volunteerism<\/strong><\/h4>\n\n\n\n<p>Another way that corporations support nonprofits is by giving employees paid time off to volunteer.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Corporate social responsibility programs<\/strong><\/h4>\n\n\n\n<p>Corporate philanthropy is sometimes part of a company\u2019s broader corporate social responsibility (CSR) program. CSR programs include philanthropy as well as other ways corporations aim to act as responsible members of communities and societies, including efforts to reduce their carbon footprint, community engagement activities, and more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Learn more about philanthropy at Inside Philanthropy\u2019s <a href=\"https:\/\/www.insidephilanthropy.com\/learn\" target=\"_blank\" rel=\"noreferrer noopener\">Learn Center<\/a>. Become a <a href=\"https:\/\/www.insidephilanthropy.com\/membership\" target=\"_blank\" rel=\"noreferrer noopener\">subscriber<\/a> today.<\/h2>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">You might also want to check out:<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-a-private-foundation\" target=\"_blank\" rel=\"noreferrer noopener\">What is a private foundation?<\/a><\/p>\n\n\n\n<p>What is a family foundation? <\/p>\n\n\n\n<p><a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-a-community-foundation\" target=\"_blank\" rel=\"noreferrer noopener\">What is a community foundation? <\/a><\/p>\n<\/div><\/div><\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p class=\"\">A corporate foundation is the charitable vehicle of a for-profit corporation, which provides the funding for grants. Basically, Company A makes a tax-deductible contribution to the Company A Foundation, and the foundation makes grants to nonprofits. Unlike private independent foundations, corporate foundations typically don\u2019t have an endowment. Instead, they rely on corporate earnings, which can fluctuate significantly year over year.<\/p>\n","protected":false},"author":470,"featured_media":143,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"content-sidebar","footnotes":""},"categories":[26779],"tags":[26780],"ppma_author":[32648],"class_list":{"0":"post-23000","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-explainers","8":"tag-ip-explainer","9":"author-ipstaff","10":"entry"},"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"IP Staff","author_link":"https:\/\/www.insidephilanthropy.com\/author\/ipstaff"},"authors":[{"term_id":32648,"user_id":470,"is_guest":0,"slug":"ipstaff","display_name":"IP Staff","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","author_category":"","first_name":"IP Staff","writer-profile":"","last_name":"","user_url":"","job_title":"","linkedin":"","instagram":"","twitter":"","facebook":"","description":""}],"_links":{"self":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts\/23000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/users\/470"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/comments?post=23000"}],"version-history":[{"count":5,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts\/23000\/revisions"}],"predecessor-version":[{"id":216293,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts\/23000\/revisions\/216293"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/media?parent=23000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/categories?post=23000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/tags?post=23000"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/ppma_author?post=23000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}