While most recognize the influence of large U.S. private foundations in global development, few think of traditional corporate foundations. As the likes of the Bill & Melinda Gates Foundation and Open Society Foundations often make headlines with multibillion pledges and daring initiatives, philanthropic arms of global U.S. firms are often relegated to the background. Yet a handful are dedicating millions of dollars annually to low- and middle-income countries.
A corporate foundation is a private foundation that derives most of its grant-making funds from the contributions of a for-profit. Business-sponsored foundations often maintain close ties with their donor company, even though they are separate legal organizations subject to the same rules and regulations as other private foundations.
This includes the requirement to file a 990 form with the U.S. Internal Revenue Service, a tax form providing an overview of a tax-exempt organization’s activities, governance and financial flows.