In 2012, in order to better meet the needs of the philanthropic sector, the Foundation Center began an extensive revision of our Philanthropy Classification System (PCS), reexamining both the terms included in the taxonomy and the overall structure. The goal was not to create yet another standard, but to work towards creating a more broadly adopted standard that more accurately reflects the work of the field and can serve as a more relevant tool for a 21st Century global philanthropy community. The Center consulted partner organizations, received feedback from the sector to complete the final revisions, and released the first version of the PCS in December 2014. The Center will be recoding our entire database over the next 4 months and the PCS will be reflected in our online products during the second quarter of 2015. Until that time, we will continue to publish data using our prior Grants Classification System. The Philanthropy Classification System (PCS) describes the work of grantmakers, recipient organizations and the philanthropic transactions between those entities. The Center’s Classification System in based on the National Taxonomy of Exempt Entities (NTEE) and has been expanded over the last three decades to include the emerging work we have evidenced while capturing and indexing the work of the sector on a global scale.The facets of the PCS illuminate the work and answer the following questions about philanthropy:
Our newly designed site lets you explore each facet of the taxonomy through the Visual Navigation tool, Quick Search, A-Z search or a hierarchy view. We will continue to update the site as we complete our recoding efforts and begin to publish data in our resources using the new PCS model.
The content of a grantmaker Profile varies based on the size and nature of the programs and the
availability of information from grantmakers. Specific data elements that could be included in a
Grantmaker name, address, and telephone: The full legal name of the grantmaker and the former name if applicable; the street address, city, state, and zip code of the grantmaker's principal office; the telephone number of the grantmaker; any additional address (such as a separate application address) supplied by the grantmaker; additional telephone or FAX numbers may be listed here as well as e-mail addresses and Internet URLs.
Contact: The name and title of the initial contact person at the grantmaker are provided here.
Donor(s): The name(s) of the donor(s) or principal contributor(s) to the grantmaker, including individuals, families, and corporations. If a donor is deceased, the + symbol follows the name.
Type of Grantmaker: Community, company-sponsored, independent, or operating foundations; corporate giving programs; and grantmaking public charities.
Background: The establishment date and original location are included for many grantmakers.
Purpose and activities: This field provides in general terms the purpose and activities of the grantmaker. This statement reflects funding interests as expressed by the grantmaker or, if no grantmaker statement is available, an analysis of the actual grants awarded by the grantmaker during the most recent two-year period for which public records exist. Many grantmakers leave statements of purpose intentionally broad, indicating only the major program areas within which they fund. More specific areas of interest can often be found in the Fields of Interest section of the entry.
Program Area(s): This section describes in detail the major areas of interest to the grantmaker. Each program area is named, either under a broad subject category or a specific name provided by the grantmaker and represents distinctly identified subject areas of focus that the grantmaker supports on a regular basis.
Fields of interest: The areas of interest reflected in the grantmaker's giving program. The subject terms provide access to the grantmakers through the Fields of Interest Index.
Geographic focus: This section describes grantmaker geographic preferences for giving. "National" and "International" are used to describe a grantmaker's scope of giving. If a grantmaker limits its giving to specific states, they will be listed here.
Types of support: This field lists the types of support (such as endowments, support for building/renovation, equipment, fellowships, etc.) offered by the grantmaker.
Limitations: Listed here are any stated limitations on the grantmaker's giving program, including geographic preferences, restrictions by subject focus or type of recipient, or specific types of support the grantmaker cannot provide. It is noted here if a grantmaker does not accept unsolicited applications.
Publications: Printed materials distributed by the grantmaker that describe its activities and giving program. These can include annual or multi-year reports, newsletters, corporate giving reports, informational brochures, grant lists, etc.
Application information: Includes the preferred form of application, the number of copies of proposals requested, application deadlines, frequency and dates of board meetings, and the general amount of time the grantmaker requires to notify applicants of the board's decision. Some grantmakers have indicated that their funds are currently committed to ongoing projects. It is noted here if a grantmaker contributes only to pre-selected organizations.
Officers and Trustees: Grantmakers use different terms to describe their governing boards, i.e., trustees, directors, managers, members. In each case the terminology preferred by the grantmaker is used. An asterisk following the individual's name indicates an officer who is also a trustee or director.
Number of staff: The number of professional and support staff employed by the grantmaker, and an indication of part-time or full-time status of these employees, as reported by the grantmaker.
Financial data (noted with the year-end date of the grantmaker's accounting period for which financial data is supplied). Includes the following information:
Revenue: The total amount of contributions and support received by the public charity, including investment income, program service revenue, net profits from sale of assets, etc.
Assets: The total value of the foundation's investments at the end of the accounting period.
Asset type: Generally, assets are reported at market value (M) or ledger value (L).
Gifts received: The total amount of new capital received by the foundation in the year of record.
Expenditures: Total disbursements of the foundation, including non-grant expenses.
Total giving: Gifts, contributions, grants paid; total amount for all grants and contributions during the year. This amount generally excludes loans and the costs of foundation-operated programs, but includes all other forms of support such as grants, scholarships, and employee matching gifts.
Qualifying distributions: The total amount of qualifying distributions made by the foundation in the year of record. This figure includes all grants paid, qualifying administrative expenses, loans and program-related investments, set-asides, and amounts paid to acquire assets used directly in carrying out charitable purposes.
Program services expenses: The total amount of program services expenses made by the public charity in the year of record. This figure includes all expenses directly involved in carrying out charitable activities, including total grants paid.
Grants paid: The dollar value and number of grants paid during the year, with the largest grant paid (high) and the smallest grant paid (low). When supplied by the foundation, the average range of grant payments is also indicated.
Set-asides: The total dollar value of set-asides made by the foundation during the year. Although set-asides count as qualifying distributions toward the foundation's annual payout requirement, they are distinct from any amounts listed as grants paid.
Grants to individuals: The total amount and number of grants made directly to or on behalf of individuals, including scholarships, fellowships, awards, and medical payments. When supplied by the foundation, high, low, and average range are also indicated.
Employee matching gifts: The dollar amount and number of employee matching gifts awarded, generally by company-sponsored foundations.
Foundation-administered programs: The total dollars expended for programs administered by the foundation and the number of foundation-administered programs. These programs can include museums or other institutions supported exclusively by the foundation, research programs administered by the foundation, etc.
Loans: The dollar amount and number of loans made to nonprofit organizations by the foundation. These can include program-related investments, emergency loans to help nonprofits that are waiting for grants or other income payments, etc. When supplied by the foundation, high, low, and average range are also indicated.
Loans to individuals: The number of loans to individuals and the total amount loaned. When supplied by the foundation, high, low, and average range are also indicated.
In-kind gifts: The monetary value and number of in-kind gifts.
EIN: The Employer Identification Number is assigned to each foundation by the Internal Revenue Service. This number can be useful when ordering copies of the foundation's annual information return, Form 990 or 990-PF, from the Internal Revenue Service.
Selected grants: A list of selected grants for those foundations with annual giving of at least $100,000. Up to ten grants reported during a given fiscal year may be provided. Grants to individuals are not included.
Sponsoring Company Information: This information will appear in brief profiles included within the entries of corporate giving programs, company-sponsored foundations, company-sponsored operating foundations, and company-sponsored public charities. These company profiles include the name, city, and state of the sponsoring company; the company's URL address; a description of the company's principal business activities, financial information for a given year, including the number of employees, assets, sales, pre-tax income, and Fortune and/or Forbes ratings; principal corporate officers; names and locations of identified subsidiaries, divisions, plants, and/or offices; and a statement of giving methods, such as direct giving programs or foundations.
Each Grantmaker profile includes links to the latest available IRS 990 and 990-PF filings for private and community foundations, and grantmaking public charities. To read or print a return, which are PDF files ("Portable Document Format"), you need the Adobe Acrobat Reader software.
The following list includes common terms used by grantmakers and grantseekers.
Annual Report: A voluntary report issued by a foundation or corporation that provides financial data and descriptions of grantmaking activities. Annual reports vary in format from simple typewritten documents listing the year's grants to detailed publications that provide substantial information about the grantmaking program.
Assets: The amount of capital or principal money, stocks, bonds, real estate, or other resources controlled by the foundation. Generally, assets are invested and the income is used to make grants.
Beneficiary: In philanthropic terms, the donee or grantee receiving funds from a foundation or corporate giving program is the beneficiary, although society benefits as well.
Bricks and Mortar: An informal term for grants for buildings or construction projects.
Capital Support: Funds provided for endowment purposes, buildings, construction, or equipment, and including, for example, grants for bricks and mortar.
Challenge Grant: A grant awarded that will be paid only if the donee organization is able to raise additional funds from another source(s). Challenge grants are often used to stimulate giving from other donors. (See also Matching Grant)
Community Foundation: A 501(c)(3) organization that makes grants for charitable purposes in a specific community or region. Funds are usually derived from many donors and held in an endowment independently administered; income earned by the endowment is then used to make grants. Although a few community foundations may be classified by the IRS as private foundations, most are classified as public charities eligible for maximum income tax-deductible contributions from the general public. (See also 501(c)(3); Public Charity)
Community Fund: An organized community program which makes annual appeals to the general public for funds that are usually not retained in an endowment but are used for the ongoing operational support of local social and health service agencies. (See also Federated Giving Program)
Company-Sponsored Foundation (also referred to as Corporate Foundation): A private foundation whose grant funds are derived primarily from the contributions of a profit-making business organization. The company-sponsored foundation may maintain close ties with the donor company, but it is an independent organization with its own endowment and is subject to the same rules and regulations as other private foundations. (See also Private Foundation)
Cooperative Venture: A joint effort between or among two or more grantmakers (including foundations, corporations, and government agencies). Partners may share in funding responsibilities or contribute information and technical resources.
Corporate Giving Program: A grantmaking program established and administered within a profit-making company. Corporate giving programs do not have a separate endowment and their annual grant totals are generally more directly related to current profits. They are not subject to the same reporting requirements as private foundations. Some companies make charitable contributions through both a corporate giving program and a company-sponsored foundation.
Distribution Committee: The board responsible for making grant decisions. For community foundations, it is intended to be broadly representative of the community served by the foundation.
Donee: The recipient of a grant. (Also known as the grantee or the beneficiary.)
Donor: The individual or organization that makes a grant or contribution. (Also known as the grantor.)
Employee Matching Gift: A contribution to a charitable organization by a company employee that is matched by a similar contribution from the employer. Many corporations have employee matching gift programs in higher education that stimulate their employees to give to the college or university of their choice.
Endowment: Funds intended to be kept permanently and invested to provide income for continued support of an organization.
Expenditure Responsibility: In general, when a private foundation makes a grant to an organization that is not classified by the IRS as a public charity, the foundation is required by law to provide some assurance that the funds will be used for the intended charitable purposes. Special reports on such grants must be filed with the IRS. Most grantee organizations are public charities and many foundations do not make expenditure responsibility grants.
Family Foundation: An independent private foundation whose funds are derived from members of a single family. Family members often serve as officers or board members of the foundation and have a significant role in grantmaking decisions. (See also Operating Foundation; Private Foundation; Public Charity)
Federated Giving Program: A joint fundraising effort usually administered by a nonprofit umbrella organization which in turn distributes contributed funds to several nonprofit agencies. United Way and community chests or funds, the United Jewish Appeal and other religious appeals, the United Negro College Fund, and joint arts councils are examples of federated giving programs. (See also Community Fund)
501(c)(3): The section of the Internal Revenue code that defines nonprofit, charitable (as broadly defined), tax-exempt organizations; 501(c)(3) organizations are further defined as public charities, private operating foundations, and private non-operating foundations. (See also Operating Foundation; Private Foundation; Public Charity)
Form 990-PF: The annual information return that all private foundations must submit to the IRS each year and which is also filed with appropriate state officials. The form requires information on the foundation's assets, income, operating expenses, contributions and grants, paid staff and salaries, program funding areas, grantmaking guidelines and restrictions, and grant application procedures. Foundation Center libraries maintain files of 990-PFs for public inspection.
General Purpose Foundation: An independent private foundation that awards grants in many different fields of interest. (See also Special Purpose Foundation)
General Purpose Grant: A grant made to further the general purpose or work of an organization, rather than for a specific purpose or project. (See also Operating Support Grant)
Grantee Financial Report: A report detailing how grant funds were used by an organization. Many corporations require this kind of report from grantees. A financial report generally includes a listing of all expenditures from grant funds as well as an overall organizational financial report covering revenue and expenses, assets and liabilities.
Grassroots Fundraising: Efforts to raise money from individuals or groups from the local community on a broad basis. Usually an organization's own constituents, people who live in the neighborhood served or clients of the agency's services are the sources of these funds. Grassroots fundraising activities include membership drives, raffles, auctions, benefits, and a range of other activities.
Independent Foundation: A grantmaking organization usually classified by the IRS as a private foundation. Independent foundations may also be known as family foundations, general purpose foundations, special purpose foundations, or private non-operating foundations. The Foundation Center defines independent foundations and company-sponsored foundations separately; however, federal law normally classifies both as private, non-operating foundations subject to the same rules and requirements. (See also Private Foundation)
In-Kind Contributions: Contributions of equipment, supplies, or other property as distinguished from monetary grants. Some organizations may also donate space or staff time as an in-kind contribution.
Matching Grant: A grant that is made to match funds provided by another donor. (See also Challenge Grant; Employee Matching Gift)
Operating Foundation: A 501(c)(3) organization classified by the IRS as a private foundation whose primary purpose is to conduct research, social welfare, or other programs determined by its governing body or establishment charter. Some grants may be made, but the sum is generally small relative to the funds used for the foundation's own programs. (See also 501(c)(3))
Operating Support Grant: A grant to cover the regular personnel, administrative, and other expenses of an existing program or project. (See also General Purpose Grant)
Payout Requirement: The minimum amount that private foundations are required to expend for charitable purposes (includes grants and, within certain limits, the administrative cost of making grants). In general, a private foundation must meet or exceed an annual payout requirement of five percent of the average market value of the foundation's assets.
Private Foundation: A non-governmental, nonprofit organization with funds (usually from a single source, such as an individual, family, or corporation) and program managed by its own trustees or directors that was established to maintain or aid social, educational, religious or other charitable activities serving the common welfare, primarily through the making of grants. Private foundation also means an organization that is tax-exempt under code section 501(c)(3) and is classified by the IRS as a private foundation as defined in the code. The code definition usually, but not always, identifies a foundation with the characteristics first described. See also 501(c)(3); Public Charity.
Program Amount: Funds that are expended to support a particular program administered internally by the foundation or corporate giving program.
Program Officer: A staff member of a foundation who reviews grant proposals and processes applications for the board of trustees. Only a small percentage of foundations have program officers.
Program-Related Investment (PRI): A loan or other investment (as distinguished from a grant) made by a foundation or corporate giving program to another organization for a project related to the grantmaker's stated charitable purpose and interests. Program-related investments are often made from a revolving fund; the foundation generally expects to receive its money back with interest or some other form of return at less than current market rates, and it then becomes available for further program-related investments.
Proposal: A written application, often with supporting documents, submitted to a foundation or corporate giving program in requesting a grant. Preferred procedures and formats vary. Consult published guidelines.
Public Charity: In general, an organization that is tax-exempt under code section 501(c)(3) and is classified by the IRS as a public charity and not a private foundation. Public charities generally derive their funding or support primarily from the general public in carrying out their social, educational, religious, or other charitable activities serving the common welfare. Some public charities engage in grantmaking activities, although most engage in direct service or other tax-exempt activities. Public charities are eligible for maximum income tax-deductible contributions from the public and are not subject to the same rules and restrictions as private foundations. Some are also referred to as public foundations or publicly supported organizations and may use the term foundation in their names. (See also 501(c)(3); Private Foundation)
Qualifying Distributions: Expenditures of private foundations used to satisfy the annual payout requirement. These can include grants, reasonable administrative expenses, set-asides, loans and program-related investments, and amounts paid to acquire assets used directly in carrying out exempt purposes.
Query Letter: A brief letter outlining an organization's activities and its request for funding sent to a foundation or corporation to determine whether it would be appropriate to submit a full grant proposal. Many grantmakers prefer to be contacted in this way before receiving a full proposal.
RFP: Request For Proposal. When the government issues a new contract or grant program, it sends out RFPs to agencies that might be qualified to participate. The RFP lists project specifications and application procedures. A few foundations occasionally use RFPs in specific fields, but most prefer to consider proposals that are initiated by applicants.
Seed Money: A grant or contribution used to start a new project or organization. Seed grants may cover salaries and other operating expenses of a new project.
Set-Asides: Funds set aside by a foundation for a specific purpose or project that are counted as qualifying distributions toward the foundation's annual payout requirement. Amounts for the project must be paid within five years of the first set-aside.
Special Purpose Foundation: A private foundation that focuses its grantmaking activities in one or a few special areas of interest. For example, a foundation may only award grants in the area of cancer research or child development. (See also General Purpose Foundation)
Technical Assistance: Operational or management assistance given to nonprofit organizations. It can include fundraising assistance, budgeting and financial planning, program planning, legal advice, marketing, and other aids to management. Assistance may be offered directly by a foundation or corporate staff member, or be offered in the form of a grant to pay for the services of an outside consultant. (See also In-Kind Contributions)
Trustee: A member of a governing board. A foundation's board of trustees meets to review grant proposals and make decisions. Often also referred to as a director or board member.
A number of sources were consulted in compiling this glossary, including The Handbook on Private Foundations, by David F. Freeman and the Council on Foundations (New York: The Foundation Center, 1991); The Law of Tax-Exempt Organizations, 6th Edition, by Bruce R. Hopkins (New York: John Wiley & Sons, 1992); and the Glossary of Fund-Raising Terms, (Alexandria, Va.: National Society of Fund Raising Executives Institute, 1986).