What is a primary function of an operating foundation?

An operating foundation is primarily established to conduct research or provide direct services rather than just funding other organizations or individuals. Unlike other types of foundations that may focus solely on grant-making, operating foundations are more engaged in the active operation of their charitable activities. This could involve developing and implementing programs, conducting studies or research initiatives, and delivering services to the community.

This characteristic distinguishes operating foundations from foundations that primarily distribute funds to other entities or individuals, which is not their main function. While educational scholarships, investment management, and granting to individuals are important philanthropic activities, they do not encapsulate the direct operational aspect that defines the primary role of an operating foundation. Thus, the essence of an operating foundation lies in its active involvement in research and providing services.