A Primer on Private Foundations

Every organization that qualifies for tax exemption as an organization described in section 501(c)(3) is a private foundation unless it falls into one of the categories specifically excluded from the definition of that term (referred to in section 509(a)). In addition, certain nonexempt charitable trusts are also treated as private foundations. Organizations that fall into… [Read More]

What is a Private Foundation?

Question: What is a Private Foundation? Answer: Organizations described in IRC Section 501(c)(3) fall into two categories: private foundations and public charities. Under Section 509, all organizations, domestic or foreign, described in Section 501(c)(3) are by default private foundations unless otherwise excepted. Private foundations must: (1) Refrain from acts of self-dealing. (2) Meet minimum distribution requirements… [Read More]