Establishing a grantmaking foundation is a challenging process. Though the reasons for starting a foundation may differ, common to all such endeavors is a commitment to make a difference on pressing social and economic problems.
A foundation is not just an organization that gives grants; it is generally intended to be a permanent institution for the social good that has the capacity to raise and manage financing. As such, founders will need a clear idea of where they will raise this money. Key challenges include knowing how to involve people and how to create a climate in which the foundation can most effectively support the people it wishes to help.
Individuals and institutions with sufficient money and interest can create foundations without consulting broadly. They need only to meet minimum legal requirements. The founders of foundations in this chapter have chosen, instead, to consult broadly, focus on learning and encourage the participation of a range of potential stakeholders for a variety of reasons:
- Lack of sufficient resources. Involving other actors helped them to leverage and raise additional resources
- Desire to improve their potential impact
- Desire to learn from others and benefit from their knowledge and good ideas
- Desire to create awareness and support for the foundation's objectives
The process of formation can take a variety of paths depending on the national political, economic, social and cultural contexts. It is also influenced by the individuals and/or organizations standing behind the idea. In the cases in this chapter, establishing the foundation involved formulating the idea, fostering awareness and commitment to this idea among key national and/or international actors, building resources to support the initiative and creating a basic institutional framework. The process involved consultations with individuals and groups related to the initiative (affluent people, key local and international organizations, political leaders, leading academics and legal and accounting professionals).