Institutionally related foundations have played a vital role in raising and managing private resources in support of public institutions of higher education. Unlike private grant-making foundations, college and university foundations are typically incorporated as public charities under section 501(c)(3) of the Internal Revenue Code. Although they may perform a range of functions, the primary purpose of most college and university foundations is to help raise private support for their affiliated institution or system, and hold and manage contributed assets. Many foundations were originally established to receive and steward private gifts, help segregate private and public funds, manage endowments, and facilitate financial transactions or entrepreneurial ventures that could not be undertaken effectively by state entities. This article contains practical advice for maintaining a successful foundation and fostering a positive relationship between that organization and its host institution.