About the South Dakota Parks and Wildlife Foundation

• What is a Foundation?
• What Limits Are There On Foundation Grantmaking?
• How Are Foundations Regulated?
• What is the South Dakota Parks and Wildlife Foundation?
• Our Mission Statement

WHAT IS A FOUNDATION?

foun-da-tion (foun-da’ shen) n. 1. The act of founding, esp. the establishment of an institution with provisions for future maintenance. 2. Funds for the perpetual support of an institution; endowment.

3. An institution founded and supported by an endowment.

en-dow-ment (en-dou’ment) n. 1. Funds or property donated to an institution, individual, or group as a source of income.

From a practical standpoint, a foundation is a nonprofit, nongovernmental corporation that supports charitable and planned giving activities in order to serve the common good. Foundations are often created with endowments-money given by individuals, families or corporations. They generally make grants or operate programs with the income earned from investing the endowments or from nonendowment charitable gifts of cash, land or other assets. Foundations may also serve as administrators of conservation easements, donor advised funds and as a support organization for other entities.

What are the different types of Foundations?

There are four basic types of grantmaking foundations:

Independent Foundations

Independent foundations are the most common type of private foundation. They are generally founded by an individual, a family or a group of individuals. They may be operated by the donor or members of the donor’s family – a type often referred to as a family foundation – or by an independent board.

Corporate Foundations

Corporate foundations are created and funded by companies as separate legal entities, operated by a board of directors that is usually comprised of company officials. Corporations may establish private foundations with endowments, make periodic contributions from profits, or combine both methods to provide a foundation’s resources. Some companies operate in-house corporate giving programs, which unlike corporate foundations are under the full control of the company and are not required by law to follow the same IRS regulations. Many corporations maintain both a foundation and a corporate giving program.

Community/Public Foundations

Community and other public foundations are publicly supported foundations operated by, and for the benefit of, a specific community or geographic region. They receive their funds from a variety of individual donors, and provide a vehicle for donors to establish endowed funds without incurring the costs of starting a foundation. Community/public foundations are administered by a governing body or distribution committee representative of community interests.

Operating Foundations

Operating foundations are a type of foundation that does not generally make grants. They have many of the same attributes as other types of foundations including planned giving programs, endowments and administrative organization. However, a majority of the operating foundation’s funds are expended to operate its own charitable or specific purpose programs all designed to serve the common good – benefit the general public.

What Limits Are There On Foundation Grantmaking?

Some foundations have broad discretion regarding the charitable causes to which their grants or operating funds may be directed. Others are sharply limited – often legally – by the mandate of the foundation donor. Some foundations are restricted to making grants or directing operating funds only to specific causes; others must restrict their funds to a specific geographic area.

How Are Foundations Regulated?

Foundations are governed by stricter regulations than public charities, which generally raise money from the public to operate institutions or programs. Both foundations and public charities might use the term "foundation" in their titles, but very different laws apply to each. The IRS requires that independent and corporate foundations:

• Pay out at least 5 percent of the year-end fair market value of their assets.
• Pay an excise tax of 1 or 2 percent on their earnings.
• Give money only to other 501c(3) organizations, with a few rare exceptions.

Nearly all community/public foundations are considered public charities by the IRS. As such, they are not subject to the same regulatory provisions as independent and corporate foundations.

WHAT IS THE SOUTH DAKOTA PARKS AND WILDLIFE FOUNDATION?

…Preserving and protecting our lands and waters for parks and wildlife…

The South Dakota Parks and Wildlife Foundation is a hybrid of several different types of foundations in that:

• The Foundation is a nonprofit, nongovernmental corporation founded by a group of individuals and managed by an independent, 17-member board of directors.
• The Foundation is operated for a specific geographic region.
• The Foundation does not generally make grants.
• The Foundation’s funds are expended to operate its own charitable or specific purpose programs all designed to serve the common good.
• All contributions to the Foundation are tax deductible.

The SDPWF was charted specifically to: (From the original charter dated October 7, 1985)

To solicit and receive contributions, gifts, grants, devises or bequests of real or personal property, or cash, from individuals, foundations, partnerships, associations, governmental bodies, or public or private corporations, and to maintain, use, and apply the whole or any part of the income therefrom, and the principal thereof, to the purposes of contributing to and cooperating with, the South Dakota Department of Game, Fish and Parks, in carrying out its existing and future governmental purposes and activities, as defined by the constitution and laws of the State of South Dakota.

The specific purposes of the SDPWF are to: (Abridged from the original charter October 7, 1985)

1. To solicit and receive contributions to improve the diversity, number, health or stability of biotic communities managed, studied or protected by the SDGFP.
2. To solicit and receive contributions that add to or improve the quality or utility of any land or water managed by the SDGFP for public recreation; education; or wildlife and fish conservation.
3. To acquire real and personal property for public recreation or education; scientific study; archeological, cultural or historical preservation; or wildlife or fish conservation, or any other purpose related to the functions of the SDGFP, and to apply such property to the purposes of this Charter as the Board of Directors, in its discretion, shall see fit.
4. To solicit and receive any and all contributions of property, whether real, personal, or cash, and to apply any such funds or property to any purpose in support of the governmental functions of the SDGFP in any of its lawful functions.

Mission Statement

To solicit and encourage support, from the private and public sector, that will facilitate the preservation and protection of our natural resources for parks and wildlife, and provide expanded recreational access opportunities for the people of South Dakota and their guests.