What Are the Main Types of Private Funders?

Understanding the key players in private philanthropy

Fundraisers in small shops often find themselves juggling grant applications, donor calls, and deciphering exactly what flavor of philanthropic entity will align with their mission. Understanding the main types of private funders isn’t just philanthropy 101—it’s the difference between thriving and spinning your wheels. Here’s an accessible, mission-driven primer to help you target the right pools and avoid the dreaded “thanks but no thanks” rejection letter (but remember, this is also part of the business!)

Private Foundations

Private foundations are the grand dames of institutional philanthropy: think Bill & Melinda Gates or that ultra-local family legacy supporting your arts council every year. These are independent legal entities, often funded by a single individual, family, or company, holding their own endowment. They’re required by the IRS to give away at least 5% of their assets annually in grants and must openly report board members, finances, and distributions (grants, board me…