A foundation is a nonprofit organization that gives money (grants) and sometimes equipment and other supplies to organizations or people who need help.

When people talk about foundations they usually mean private foundations like The Ford Foundation, The W.K. Kellogg Foundation, and Bill and Melinda Gates Foundation. What can be confusing sometimes is that even some of the largest foundations are not called foundations, like the Lilly Endowment and the Pew Charitable Trusts.

At the Foundation Center's Web site you can learn about how people apply for grants. If you'd like to learn more about foundations and their history, how they're defined by the Internal Revenue Service, and how they work, click here.