Sources of institutional grants and contributions in the private sector generally fall into two categories: private foundations and corporations. Approaches to each differ significantly, so be aware that the following information is only a general guideline.

Private foundations
A private foundation is a nongovernmental, nonprofit organization managed by its own trustees and established to maintain or aid charitable organizations serving the public good, primarily by making grants to other nonprofit organizations. There are several types of foundations:

• Independent foundations are grantmaking organizations with geographical and topical sets of interests. Most, but not all, will accept proposals from nonprofit (501(c)(3)) organizations.
• Operating foundations run their own research, social welfare or other programs. While some may make some grants within their areas of interest, most fund only their own projects.
• Community foundations are tax-exempt grantmaking foundations established within a locality or region to support local projects. Their funds come from a variety of donors and funding decisions often reflect the wishes of those donors.