A private foundation is typically set up as a non-profit corporation that bears the name of its donors, but may alternatively be established as a trust. Donors specify the charitable purpose of the foundation (example: grants for cancer research, scholarships for the needy, support of religious goals) .
A foundation in the United States is a type of charitable organization. However, the Internal Revenue Code distinguishes between private foundations (usually funded by an individual, family, or corporation) and public charities (community foundations and other nonprofit groups that raise money from the general public). Private foundations have more restrictions and fewer tax benefits than public charities like community foundations.
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A private foundation, in the United States, is a charitable organization described in the Internal Revenue Code by section 509. A private foundation is necessarily a 501(c)(3) exempt organization (or a former such entity). It is defined by a negative definition: by what it is not.
Silicon Valley Community Foundation United States: San Jose, California: $13.6 billion 2007 13 Kamehameha Schools United States: Honolulu: $11.5 billion 1887 14 Robert Wood Johnson Foundation United States: Princeton, New Jersey: $11.4 billion 1972 15 J. Paul Getty Trust United States: Los Angeles: $10.4 billion 1982 16
A private foundation is a charitable organization that, while serving a good cause, might or might not qualify as a public charity by government standards. The Bill & Melinda Gates Foundation is the largest private foundation in the U.S. with over $38 billion in assets. Most private foundations are much smaller.
The Donald J. Trump Foundation was a New York-based tax-exempt private foundation formed in 1988 by Donald Trump and existed until its court-ordered and court-supervised dissolution in 2019. It was formed by Trump to receive his share of the royalties from his book Trump: The Art of the Deal, as well as donations from outsiders, to be applied to charitable causes.