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Glossary

Private foundation

A grantmaking charity, usually endowed by a single source, that files Form 990-PF.

A private foundation is a tax-exempt organization, typically funded by one family, individual or company, that mostly makes grants rather than running its own programs. It files Form 990-PF and is required to pay out a minimum share of its assets each year.

This is the classic grantmaking foundation. It differs from a public charity, which draws support from many sources, and from a donor-advised fund, which is an account held inside a sponsor.

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Questions and answers

What is a private foundation?
A grantmaking charity, usually endowed by a single source, that files Form 990-PF. A private foundation is a tax-exempt organization, typically funded by one family, individual or company, that mostly makes grants rather than running its own programs. It files Form 990-PF and is required to pay out a minimum share of its assets each year.

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