ABSTRACT
A charitable trust or foundation is a body set up privately to make grants for charitable purposes. The Association of Charitable Foundations has added a fifth category; community foundations. Community foundations are charitable trusts that support local community causes and their number doubled in the first decade of the century. The basic tools and methods employed in raising funds from trusts and foundations have remained the same over many years, though technological developments have facilitated some advances. Most trusts and foundations derive their income from an endowment; a capital sum given by a wealthy individual, family or company. The endowment may take the form of cash, stocks, shares or land. It provides a tax-exempt income that funds grant-giving. The giving decisions of trusts reflect individual and often idiosyncratic preferences and styles. The public benefit test was introduced as part of a general move to oblige charities to set out clearly what they do and to measure their achievement.
