Private Foundation
Definition of 'Private Foundation'A charitable organization that, while serving a good cause, does not qualify as a public charity by government standards. A private foundation is a nonprofit organization which is usually created via a single primary donation from an individual or a business and whose funds and programs are managed by its own trustees or directors. As such, rather than funding its ongoing operations through periodic donations, a private foundation generates income by investing its initial donation, often disbursing the bulk of its investment income each year to desired charitable activities. |
|
Investopedia explains 'Private Foundation'Private foundations generally fit into two categories: private operating foundations and private non-operating foundations. Private operating foundations actually run the charitable activities or organizations they fund with their investment income, while private non-operating foundations simply disburse funds to other charitable organizations. |
Related Definitions
Articles Of Interest
-
Deducting Your Donations
Generosity may be its own reward, but some charitable giving also provides personal tax benefits. -
Gifting Your Retirement Assets To Charity
There are several things to consider when it comes to this type of charitable giving. Make sure you're well informed. -
Trading The Non-Farm Payroll Report
Discover how to trade the NFP report without getting knocked out by the irrational volatility it can create. -
Does the federal government fund any NGOs? Which ones?
A non-governmental organization (NGO) is a non-profit, citizen-based group that functions independently of government. NGOs are organized on local, national and international levels to serve ... -
How do NGOs get funding?
A non-governmental organization (NGO) is a non-profit, citizen-based group that functions independently of government. NGOs are organized on local, national and international levels to serve ... -
How To Start Your Own Private Foundation
Private foundations can be time consuming and expensive to set up and operate. -
Is A One Million Dollar Nonprofit CEO Salary As Bad As It Sounds?
Although seven-figure salaries for CEOs of nonprofit organizations may make most cringe, might there ever be a time when it can be justified? -
Don't Judge A Charity Based On Administrative Costs
It is unwise to base charitable giving on administrative costs. -
How To Start A Charity
Here's a detailed guide that provides the steps needed to start a charity. -
How To Make Your Holiday Giving Count
With so many nonprofits to choose from, how do you know where to send your charitable dollars?
Free Annual Reports