Independent Foundations

Independent foundations are distinct from other kinds of foundations, such as family or corporate foundations, in that they are not governed by the benefactor, the benefactor’s family, or a corporation. They are usually funded by an endowment from a single source such as an individual or group of individuals, although they may have begun as a family foundation or corporate foundation. Most of the largest private foundations in the U.S. are independent foundations.

After you have secured funding from your local businesses and possibly approached your community foundation, consider applying for a grant from an independent foundation.

Independent and family foundations continue to be a reliable funding source for many organizations. In the State of Grantseeking Report, the majority of respondents reported receiving awards from these foundations. Submitting proposals to these funders should be a high priority. The actual foundation will change year to year, but the percentage this represents of your overall grants income should remain relatively the same.

According to Giving USA, giving by all types of foundations combined increased 2.5% in 2019, to an estimated $75.69 billion. That is a small increase in giving, so if you have not received funding from a foundation in the past, you may want to keep your request below their average gift amount.

Grantmaking by independent foundations increased 2.2% in 2019. If you are already receiving funds from an independent foundation, you may want to maintain your level of request this year until their overall giving increases.

Independent and family foundation grant awards can range from very small awards to hundreds of thousands of dollars. Try for a mixture of small annual awards as well as larger, one-time, or multi-year grants. Creating a healthy mix equates to financial sustainability.

Keep in mind that foundations can provide research and seed funding for innovative projects and untested ideas. Applying to a foundation to pilot a program is often a smart move. However, you will likely only receive support for a short period of time, maybe one year or, if you are lucky, two or three years. Ask yourself, “What is our plan for long-term financing for this project?” You need to have this thought out, and the foundation will want assurance that the project will continue as well.

Go to our Charitable Giving database for the U.S. or Canada and use the Type of Grantmaker filter to select “Foundation, Fund, or Trust.” If the funder does not reference a family in their name, it will often be an independent foundation.

Be aware of what stage in a project a foundation likes to invest. Some funders prefer to provide seed funding; others would rather invest at the very end of a project. You can generally find this information on the foundation’s website, either by reviewing the application guidelines, lists of past grants, or annual reports. If the foundation doesn’t have a website, you can often look at their IRS 990 forms, noting the type of funding they have provided.

Independent foundations may reject your first one or two grant requests. This is not unusual, as they are just starting to learn about who you are and what you do. Be persistent. If your organization is a good fit for the foundation's guidelines, don’t give up after a couple of rejections.

Position your organization as the go-to authority for in-the-field information. Become a trusted resource for current and potential funders regarding topics that reflect your mission.

Be honest and forthright with the foundation. Don’t be afraid to talk with them about unexpected challenges or bad news. This is important to keep in mind no matter who the funder is (including government), but it is particularly important with independent foundations, as they often have the flexibility to work with you on a particular problem.

Proactively share your success. As your organization or program achieves results, don’t leave the foundation in the dark. Send timely updates, reports, e-newsletters, or links to blog posts to demonstrate the progress you have made. Engage the foundation’s program officer. Don’t overwhelm her with needless information, but do keep her up to date on the particular project the foundation funded.