What is a Private Foundation?

Private foundations are often founded by an individual or corporation and do not receive support from the public. They are essentially a private tax exempt organization with the purpose of benefitting public charities, including educational institutions, research organizations, or other nonprofit organizations serving the public interest. A private foundation does not provide charitable services but makes grants to provide funding to other qualified charities. Private foundations are established by those who want a greater degree of control over administration, making grants and investment of the assets donated to the private foundation, than is possible with public charities.

More importantly, the private foundation of an individual or family can serve to transfer assets to the next generation. This is accomplished by involving the younger generation in the foundation’s administration, management, and grant making. Children can learn about and engage in philanthropy at an early age. When a private foundation is established by a family, all of the family members’ charitable giving can be channeled into one vehicle, resulting in larger gifts and greater impact on their chosen charities.

Depending upon your level of giving, the private foundation may serve you and your family's charitable giving in a unique and beneficiary way. Want to learn more? Provide your comment here or contact my office for further information.