Foundation (nonprofit) facts for kids

A foundation is a special kind of organization that is set up to do good things for the world. Think of it like a group that uses money to help with charity (like helping people in need) or research (like finding cures for diseases).

Most foundations are endowed. This means they are given a large amount of money at the start. This money is then used to fund their work for many years. Famous examples include the Rockefeller Foundation and the Wikimedia Foundation.

What is a Foundation?

A foundation is usually a non-profit organization. This means it doesn't try to make money for itself. Instead, it uses its funds to support other groups or projects. These projects often focus on things like education, health, science, or the arts.

How Foundations Get Money

Foundations often get their money from wealthy people or families. These people want to use their wealth to make a positive difference. The money is put into a special fund, and the foundation uses the income from this fund to pay for its activities.

The Rockefeller Foundation

The Rockefeller family earned a lot of money from banking and oil businesses. They created the Rockefeller Foundation with a very large sum of money. The people who run this foundation decide how to use the money. They give it to different charities, support art projects, and help many other causes they believe in.

The Bill & Melinda Gates Foundation

Another well-known example is the Bill & Melinda Gates Foundation. Bill Gates made a huge fortune from his company, Microsoft. He and his wife, Melinda, now spend most of their time giving away their money. They support important projects around the world. For instance, they help improve education in the United States. They also work to treat diseases like AIDS in developing countries.

What Do Foundations Do?

Foundations play a big role in helping communities and solving global problems. They can fund new scientific discoveries, help schools get better resources, or support programs that fight poverty.

Supporting Research and Education

Many foundations give grants to scientists and universities. This helps them do important research that can lead to new medicines or technologies. They also support schools and colleges, making sure more students can get a good education.

Helping Communities

Foundations often work to improve life in local communities. They might fund food banks, build community centers, or support programs for young people. Their goal is to make life better for everyone.

Images for kids

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  This chart shows how a foundation works.

See also

• In Spanish: Fundación (derecho) para niños