Key Differences and Rules for Public and Private Foundations
Foundations play a vital role ion philanthropy, enabling individuals, families, and organizations to support causes they care about. They generally fall into two main categories; public foundations and private foundations. While both share the overarching goal of funding charitable work, they differ significantly in their rules, operations, and governance.
Here is a breakdown of the key differences and rules for public and private foundations:
Both types of foundations are tax-exempt under section 501(c)(3) of the Internal Revenue Service Code. However, their rules for maintaining this status vary: