Grant-making trusts sometimes known as "foundations" support a vast range of enterprise and activity. Some of the oldest charities are grant-making trusts, often with a permanent endowment that cannot be spent. To be able to work effectively in the modern world, these charities must optimise the management of their income producing assets (e.g. land and investments). Often they can also benefit from co-operation with other grant making bodies and so develop new grant-making programmes. Some have moved beyond traditional grant giving by making social investments in other charities.
Historically many foundations arise from the philanthropic generosity of individuals and this still happens today. However, increasingly communities are setting up charitable organisations through which funds are channelled into the community from larger national or international funding bodies.
The concept of the Community Foundation, first developed in the United States, is now well established in the UK and requires a fresh look at grant making when compared with the traditional grant-making trust. Substantial obligations are undertaken with funding bodies, that require detailed contractual controls between the foundation and the funder. In turn these place responsibilities on the foundation in delivering the grant programme and dispersing the grant monies. The community foundation turns the traditional grant application, consideration and grant-making process right around, with its focus being on going out into the community to generate applications and make the grants, rather than being reactive to contacts and applications received through established connections. The community foundation will also have a significant number of employees, by contrast with many grant-making trusts which deliver their services either through a small staff or through out- sourcing.