Posts Tagged: private foundation

Should I Start a Private Foundation?

March 31, 2023 Posted by Casey Summar in Non-profits, Nonprofits
hand holding pen reviewing contracts for private foundation

What is a Private Foundation? A private foundation is a type of 501(c)(3) tax-exempt organization typically established for the purpose of grantmaking. Private foundations are usually funded by an endowment, a single donor (whether an individual or corporation), or a small group of donors. This is in contrast to public charities which must be supported …

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What is the Difference Between a Public Charity and a Private Foundation?

January 11, 2022 Posted by Casey Summar in Charitable Deductions, Nonprofits, Taxes

In the nonprofit sector, the words “charity” and “foundation” often are used interchangeably. However, underlying these terms is a legal concept critical to most 501(c)(3) tax-exempt organizations. Each 501(c)(3) is classified by the IRS as either a “public charity” or a “private foundation.” This classification has significant implications for the organization as it impacts the …

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