Private Foundations

Private foundations make grants based on charitable endowments. The endowment funds come from one or a small handful of sources -- an individual, a family or a corporation. Because of their endowments, they are focused primarily on grantmaking and generally do not raise funds or seek public financial support the way public charities (like community foundations) must.

“Private foundation” is the umbrella term that includes corporate, independent, family, and operating foundations.  As of 2011, there were 73,764 private foundations in the United States (Foundation Center, 2011).  

In 2011, private foundations held more than $604 billion in assets and gave away more than $45 billion (Foundation Center, 2011).  

Below is everything on our site for private foundations. You can use the filtering options on the right to narrow these results.

Practice 1. The board (and investment committee and staff, if any) of a foundation should understand and fulfill their respective fiduciary responsibilities and duties under applicable law and the governing documents of the foundation and stay informed regarding any relevant changes in law, duties, or responsibilities.

Practice Tips:

The Council's Board of Directors released this guidance memorandum in March 2010 and strongly recommends that when reviewing and approving foundation investment policies and procedures practices, all foundations—private and public-consider these best practices in foundation investment management.

Things to do NOW – “An Ounce of Prevention...”

Council correspondance to Treasury Department to make equivalency determination easier.

Grantmakers searching for more detailed information about the charitable status of their potential grantees may find the answers they need in the IRS’ Select Check tool.

This IRS online search tool allows the user to:

(1) search the IRS public charity list, known as IRS Publication 78, for data to determine if an organization is charitable,

(2) determine if an organization has filed a Form 990-N (required for smaller charities), or

Grantmakers should be advised that Hurricane Sandy is a “qualified disaster” for federal tax purposes. Under IRS rules, this means that employers may more easily assist employees affected by the disaster. Employers and their related foundations may make payments for reasonable and necessary personal, family, living, or funeral expenses, and reasonable and necessary expenses incurred for the repair or rehabilitation of a personal residence or its contents. Such payments will not be treated as taxable income to the affected employees.

Submitted December 21, 2012

Comments on Proposed Amendments to the Regulations Relating to Reliance Standards for Making Good Faith Determinations

The Pension Protection Act of 2006 (PPA) permitted individuals to roll over up to $100,000 from an individual retirement account (IRA) directly to a qualifying charity without recognizing the assets transferred to the qualifying charity as income. While this initial provision expired on December 31, 2007, it has been extended several times. On January 2, 2013, President Obama signed the American Taxpayer Relief Act of 2012 (H.R. 8) into law, extending the provision until December 31, 2013.

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