Grants for Private Foundations is a grant program from the Ford Foundation, one of the largest private foundations in the United States with an endowment of over billion. The Ford Foundation supports visionary leaders and organizations on the frontlines of social change worldwide, working across issues including human rights, sustainable development, and freedom of expression.

As a private foundation, Ford does not solicit donations from the public but distributes more than half a billion dollars annually from investment returns. Grants support individuals and organizations advancing social justice, economic equity, open governance, and other mission-aligned causes.

How we make grants - Ford Foundation The Ford Foundation is the one of the largest private foundations in the United States, with an endowment of $16 billion. We use our financial resources to help our grantees achieve the greatest possible impact. But what does that mean, exactly?

In this series of videos, we explain how our funding fuels social change. Learn what makes us different from public charities, where our original endowment came from, and how careful stewardship of our assets will keep our mission alive for years to come. Download transcript for how our endowment works [Simple animated graphics support the narrative throughout.]

The Ford Foundation is the second-largest private foundation in the United States, with an endowment of over $10 billion. So … what does that mean exactly? A private foundation is a non-profit organization that makes grants that serve the public good.

In Ford’s case, we support visionary leaders and organizations on the frontlines of social change worldwide. We work on a variety of issues, from human rights to sustainable development to freedom of expression. The Ford Foundation is different from public charities in that we do not take contributions from donors.

No fundraising, no pledge drives, no benefit dinners. The Ford Foundation has no income other than the returns on its invested endowment. Where did that $16 billion come from?

The foundation was established in 1936 with a gift of $25,000 from Edsel Ford. When Edsel and his father, Henry, died in the ’40s, they left the foundation the equivalent of almost $4 billion. Through smart financial management, we’ve grown that into our current $10 billion endowment.

Plus, we’ve invested the equivalent of $54 billion into our work. How much of the endowment does the foundation spend each year? US tax code specifies that foundations must pay out at least 5% of their assets each year.

Ford consistently exceeds that amount, which means that Ford currently spends over half a billion dollars annually to support our mission. It’s up to our investment staff and board to maintain a healthy endowment without exposing it to too much risk. By investing responsibly, we can continue to fund individuals and organizations who are changing our world for the better.

Whether they are advocating for the right to a living wage or making award-winning documentaries that advance social justice, we’re supporting open and accountable governance worldwide. Through careful stewardship of our endowment, we can keep our mission alive for years to come. [on-screen graphic: Ford Foundation logo] All videos produced by the Ford Foundation since 2020 include captions and downloadable transcripts.

For videos where visuals require additional understanding, we offer audio-described versions. We are continuing to make videos produced prior to 2020 accessible. Videos from third-party sources (those not produced by the Ford Foundation) may not have captions, accessible transcripts, or audio descriptions.

To improve accessibility beyond our site, we’ve created a free video accessibility WordPress plug-in . How our grantmaking works Though we’re changing the way we think about our grantmaking areas, the basic process will remain more or less the same. Here we explain how proposals are reviewed and how grants are made and monitored.

Download transcript for how our grantmaking works [Simple animated graphics support the narrative throughout.] Each and every year, the Ford Foundation makes approximately 1,400 grants to organizations all over the world that serve the public good.

We fund a broad range of issues, but at the heart of our work is the belief that all people deserve the opportunity to fulfill their potential, contribute to society, and have their voices heard. Our grantmaking tackles the systems and structures that keep those opportunities out of reach for many communities. Each of our areas of work, from education to human rights to economic fairness, is overseen by teams of program officers.

These teams are experts in their fields, with years of experience and deep ties to the communities with which they work. Based on their extensive knowledge of the most pressing issues in their fields, program teams seek out people and organizations with bold ideas and scalable solutions. The teams work with prospective grantees to create grant proposals to support those solutions.

Grant applications may also be submitted through the Ford Foundation website. But in a typical year, less than one percent of unsolicited applications receive a grant. How are proposals reviewed?

Once a proposal is selected for funding, it goes through a thorough review, which ensures we comply with all legal requirements for charitable giving. We hold ourselves to the highest standards of accountability. The foundation then formally approves a grant and issues an official grant letter.

How are grants monitored? Through visits, convenings, and written reports. Program teams maintain close communication with the people and organizations they support, learning about their progress and challenges.

It is a privilege to work on the frontlines of social change with these visionary leaders and organizations. And it is our mission to support them transparently and responsibility. [on-screen graphic: Ford Foundation logo] All videos produced by the Ford Foundation since 2020 include captions and downloadable transcripts.

For videos where visuals require additional understanding, we offer audio-described versions. We are continuing to make videos produced prior to 2020 accessible. Videos from third-party sources (those not produced by the Ford Foundation) may not have captions, accessible transcripts, or audio descriptions.

To improve accessibility beyond our site, we’ve created a free video accessibility WordPress plug-in . What’s the difference between core and project support? What is a PRI?

General operating support (also known as core support funding, or core operating support) refers to a type of grant that helps nonprofits carry out their day-to-day work. These grants often take the form of multi-year commitments, and are used to pay for the kind of expenses that are essential for an organization to function.

An investment in core organizational strength, they are intended not only to enable day-to-day operations, but to help an organization build a sturdy foundation for their work that makes it possible for them to thrive in the long term. In contrast to general operating support, project support grants provide organizations with the funds they need to develop and implement distinct initiatives.

These grants are usually time-bound, and aimed at achieving specific goals and milestones. Project support grants can also include indirect cost support (also called indirect cost rate or IDC). These are costs that are not direct results of a specific project but that an organization incurs in order to operate and effectively undertake the initiative associated with a project support grant.

Examples include costs for facilities (heat, electricity), technical support, and legal and financial services. Download transcript for how program-related investments disrupt inequality [Simple animated graphics support the narrative throughout.] Most people think of foundations as organizations that serve the public good by making grants.

And that’s true. But foundations can help improve people’s lives in other ways—for instance, by making loans and equity investments that advance social causes. We call these “program-related investments” or “PRIs.

” At the Ford Foundation, we most often use PRIs to make long-term investments in communities neglected by mainstream financial institutions. It might work like this: We invest in a nonprofit fund that is trying to develop affordable housing. Our investment encourages other lenders to join in.

Over time, that money is used to build thousands of affordable homes for low-income people and communities. The developers repay the loan with a small amount of interest. And with that money back in hand, we reinvest yet again in new projects that advance social change.

Why would a foundation make an investment instead of a grant? Unlike a grant, which is not repaid, a program-related investment is just that: an investment. And because we expect to recover our investment, we can do more with our resources by using our funds again and again.

A PRI can make a project seem less risky in the eyes of traditional investors. We often provide what’s known as “anchor funding,” which gives other investors—foundations, as well as banks, for-profit companies, and government agencies—the confidence to join in too. A PRI can also help an organization develop financial discipline and planning skills.

In order to receive an investment, organizations typically must develop and present a 10-year financial plan, which can help increase their focus and effectiveness. How does the Ford Foundation use PRIs? We pioneered the use of PRIs in 1968 by petitioning Congress to approve their use.

Since then, we have committed $600 million to these investments, supporting projects that range from the establishment of a women’s poultry cooperative in India to the expansion of credit unions serving low-income communities in California. Hand in hand with our grantmaking, our investments are advancing social change and helping people build better lives for themselves and their families.

[on-screen graphic: Ford Foundation logo] All videos produced by the Ford Foundation since 2020 include captions and downloadable transcripts. For videos where visuals require additional understanding, we offer audio-described versions. We are continuing to make videos produced prior to 2020 accessible.

Videos from third-party sources (those not produced by the Ford Foundation) may not have captions, accessible transcripts, or audio descriptions. To improve accessibility beyond our site, we’ve created a free video accessibility WordPress plug-in .

In contrast to grants, which are not paid back, program-related investments (often referred to as PRIs ) are investments in causes and communities often neglected by mainstream financial institutions. Foundations provide PRIs in the form of loans and equity investments at favorable rates.

PRIs often begin as small anchor investments, which encourage other foundations, banks, for-profits companies, and government agencies to invest as well. Because PRIs are paid back, they are a way of maximizing resources—funds can be reinvested again and again. A theory of change is a roadmap for creating lasting change.

It maps the process of change from beginning to end, guiding the work ahead by identifying problems, laying out goals, and outlining short- and long-term outcomes and their likely impacts. A clear, specific theory of change makes it easier to see what’s possible to achieve—along with how and why. Learn more in this guide from Grantcraft .