A foundation is an organization that uses money to make our world, our society, or our community a better place. There are tens of thousands of foundations in America, most of them set up by wealthy individuals who want to use some of their money for charitable causes.

The biggest foundation in the world is the Melinda and Bill Gates Foundation, set up by the founder of Microsoft. Mr. Gates and his wife have given tens of billions of dollars to their foundation. Many of the grants from the Gates Foundation go to cure illnesses that kill children in less developed parts of the world.

There are other types of foundations as well. Some foundations are set up by large corporations, others are set up by families, and still others are created in a way that lets people in the community donate money and get involved in philanthropy. This last type is called a community foundation. Rose Community Foundation is this type of foundation.

What is a Grant?

When a foundation gives money to a charitable organization, it is called a grant. The organization can use the grant to do its work; the money does not need to be paid back. Foundations make grants to organizations that are doing the kind of work that the foundation wants to support. Some foundations make grants to all kinds of good causes. But many foundations limit the kinds of organizations they support, for example, making grants only to help the environment, or to assist the homeless.

Rose Community Foundation makes grants in five areas: Jewish Life, Aging, Child and Family Development, Education and Health.

How do foundations decide who gets a grant and who doesn't?

Every foundation is different. Generally, though, the people who run foundations first decide how they want the foundation's money to be used. Like people and businesses, foundations set priorities. Let's say the Green Foundation decides that its highest priority is to improve their community's environment. Next, the Green Foundation's leaders find out what the biggest needs are. This is called a needs assessment. Let's say the biggest environmental problems are air pollution and recycling. Then they would find out which nonprofit organizations are working on these problems. Let's say they find 50 organizations working in this area.

Then the Green Foundation lets these organizations know that they have grant funds that will be used to help reduce air pollution and expand recycling in the community. But to get a grant, the organizations have to submit a grant proposal to the Foundation explaining how they plan to solve a problem, and how a grant from the Green Foundation can help. The Foundation may send out grant guidelines stating what the grant proposal should contain.

The Green Foundation may receive grant proposals from many more organizations than they have the money to fund. So, to make sure the Foundation's money is put to the best use, the decision-makers at the Green Foundation carefully review the grant proposals to decide which organizations are best qualified to solve the community's air pollution and recycling problems. They may even conduct a site visit - actually go to the organization's headquarters - to ask in-depth questions and watch the organization in action. This review of a grant proposal is called due diligence. It means the decision-makers are checking to make sure that the grant applicant will use the Foundation's funds for the proper purpose.

Finally, based on their analysis, the decision-makers decide which grant proposals they will fund. Then they have the grantee (the organization chosen to get a grant) sign a contract stating that they will use the money for the purposes of the grant, and the Green Foundation sends the grantee a check.

How is a youth foundation different?

In most ways, Rose Youth Foundation will work the same way as many other foundations. As grantmakers, the youth will do all of these things:

Set priorities: Youth decide what the priorities will be for the $60,000 they have to grant within the Jewish community.
Needs assessment: Youth will learn about the needs of the community within their priority area(s).
Grant guidelines: Youth will decide what they want the organizations to include in grant proposals.
Proposal review: Youth will read proposals and judge how well the organization will meet their priorities.
Site visit: Youth will visit potential grantees to see them in action.
Make grants: Youth will deliberate which grant proposals will be funded, and how much the grantee will receive.

Rose Youth Foundation participants may also be involved in contacting the grantees, publicizing grants, and other foundation activities.

Read our 2011 Report to the Community.

"Rose Youth Foundation is both my connection to Judaism and my chance to really change the world I live in as a teenager."

Dayne Zolle