What is a common funding source for independent foundations?

Independent foundations primarily rely on investment returns from their endowment as a common funding source. These foundations typically establish large endowments consisting of donated assets that are intended to be preserved over the long term. The income generated from these investments provides a steady flow of funds that the foundation can use to support its charitable activities and grants.

Investment returns, which can come from various asset classes including stocks, bonds, and alternative investments, allow foundations to maintain their financial sustainability while also potentially growing their endowment over time. This approach ensures that they can fulfill their philanthropic missions without depleting their capital base.

Additionally, relying on endowment returns distinguishes independent foundations from other entities that may depend on annual government funding, public contributions, or corporate sponsorships, as these alternatives do not provide the same level of financial independence and stability over the long term. The use of investment returns aligns well with the goal of preserving capital for future generations while still contributing to current philanthropic efforts.