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Should Family Foundations Make Grants to Start-Up Organizations?  


Author:  Staff Editors.


Source: Volume 03, Number 02, January/February 2004 , pp.5-6(2)




Family Foundation Advisor

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Abstract: 

Family foundations are often asked to fund start-up charities, which are organizations just beginning to operate as a formal, organized nonprofit. These organizations may be three to six months old, or they may be volunteer groups that have operated without tax status for several years and are only now formalizing their charitable missions. Start-up grants are designed to provide financial stability for the new charity, allowing it time to establish itself without devoting all its resources to fundraising (or enduring the uncertainty associated with reaching the end of the financial road before it is viable). On the most basic level, the foundation board should decide if, philosophically, it feels its grant dollars are better spent with start-ups or existing organizations and whether it will fund start-ups.

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