Private foundation
A private foundation is a 501(c)(3) typically funded by a single source — a family, individual or corporation — that often makes grants rather than running its own programs.
Private foundations file the Form 990-PF, must distribute roughly 5% of their assets each year, and face stricter self-dealing and excise-tax rules than public charities.
Donations to private foundations are deductible but at lower limits than gifts to public charities.
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Related terms
- Public charity — A public charity is a 501(c)(3) that receives support from a broad base of donors and the public — the most common type of charitable organization.
- Form 990-PF — Form 990-PF is the annual return that every private foundation files, regardless of size, detailing assets, grants and investment income.
- 501(c)(3) — A 501(c)(3) is a U.S. tax-exempt organization operated for charitable, religious, educational, scientific or similar purposes, to which donations are generally tax-deductible.
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