This paper explores possible contributions of the philanthropic community to education, describing the basics of grantmaking foundations and the growing positive climate for educational support. The paper describes different types of foundations, including community, corporate, and family foundations. It is noted that there are 54,000 grantmaking foundations in the United States, an increase from 22,000 in 20 years. Education receives almost one-fourth of all foundation grant dollars. Social investing or venture philanthropy, whereby investments are made in people and the investor forms a partnership with the recipient in terms of hands-on participation that accompanies the grant dollars, is a hotly debated model for foundations. The paper describes the Social Venture Partners in Seattle as an example of venture philanthropy involving education and child welfare projects. One of the problems identified with this approach is that venture philanthropists often withdraw quickly if results are not forthcoming. Nevertheless, they are influencing mainline foundations, such as the Ford and Rockefeller foundations. It is also noted that the Council on Foundations educates its members about new approaches to organized philanthropy and reports that education and children are considered safe areas to fund. The paper concludes by asserting that the U.S. economy will shortly experience the greatest intergenerational transfer of wealth in history, estimated at $46 to $125 trillion, and that the largest question is what "baby boomers" will do with this money inherited from the World War II generation. (KB)