A charitable foundation is one of the types of a non-profit organization (NPO), a full-fledged organization with its processes, employees who work according to the labor code. Unfortunately, many people do not realize how NPOs work and consider them to be a scam. But it’s not like that at all. Further, we’ll answer the most popular questions on the subject.

How Does the Foundation Differ From Commercial Organizations?

The foundation exists on money that it attracts from various sources. It always has the main document, policy, which identifies the goals of the foundation and the types of activities that the organization can carry out. It cannot carry out activities that are not included in this list.

Some statutes contain permission for commercial activities. This means that the foundation can provide any services on a commercial basis. All funds that come from these services must be spent in accordance with the purpose and objectives of the fund.

The key difference from a commercial organization is that there are no shareholders or profit-sharing. All funds raised are spent on the main activities that are spelled out in the document.

Who Works in the Charitable Foundations?

As an organization, the foundation hires employees. There are no differences from commercial organizations: there is an employment contract, work schedule, work tasks, etc. But at the same time, the fund also has volunteers who provide services free of charge: photographers, designers, lawyers, drivers, etc.

The presence of volunteers who donate part of their free time helps the foundation to save on some items of expenditure and to direct more funds to help beneficiaries.

There are managers: director, development director, fundraisers, marketers. These are specialists who are involved in raising funds for the foundation. There are accountants who help an organization to exist as a non-profit organization.

There are those who work directly with the beneficiaries: psychologists, specialists in child and adolescent psychology, social educators – people who can see the whole picture, can assess the economic situation, and the psychological state, and emotional ties.

There are people who write programs, work methodologies. These are combined specialists who understand social issues and have psychological education and relevant knowledge, including a manager who can organize others for effective work.

Where Do the Funds Come From?

Funding sources for different foundations are arranged in different ways. It can be private or corporate donations, endowment capital, funding by the founder of the foundation, grant support, and more.

Charitable foundations are usually fully fundraising organizations. This means that the platform independently attracts all the funds. It can be thanks to the ads on special forums, social organization websites, even on gambling portals like. And there is nothing wrong with that as all the funds are going to be donated to certain goals and activities.

Who Do NPOs Usually Support?

Non-profit organizations, as a rule, donate money to orphans, those who graduated from boarding schools and orphanages, disabled children, seriously ill people (up to 60 years old, but there are exceptions), large families. This isn’t a full list, but these categories are the most common.