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Are you confusing your donors with a bureaucratic category that makes no sense and doesn't matter to them?
You might be if you're raising funds under the flag of the foundation that's the fundraising arm of your main organization.
There are plenty of reasons to organize yourself this way. But none of them are important to donors. If you're communicating in a way that forces them to understand that your foundation is in fact a separately run organization, you are keeping the confusion alive.
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