Private Foundation (PF)
A Private Foundation is a tax-exempt charitable organization. Donors who establish Private Foundations exercise a greater degree of control over the operation and grant-making activities of the foundation that if they had established a Supporting Organization or Donor-Advised Fund maintained by a public charity. The Private Foundation provides flexibility to the donor in making grant distributions from the foundation, current income tax deductions for direct contributions to the foundation, and transfer tax deductions for gifts of income interests in Charitable Lead Trusts or remainder interests in Charitable Remainder Trusts.
How does a Private Foundation Work?
A Private Foundation is established as a tax-exempt entity which can receive contributions. Private Foundations generally make grants to public charities or private operating foundations.
Sample Case Strategies
Below are a few examples of how Private Foundations have been used in specific financial strategies.
