private foundation
Definition
- Noun:
- A type of charitable organization: A private foundation is a specific legal classification for a charity. Its key defining feature is that it does not receive a significant portion of its financial support from the general public or from government grants. Instead, it is typically funded and controlled by a single individual, a family, or a corporation.
Usage
- A private foundation is established to manage and distribute charitable funds for specific philanthropic purposes, such as education, science, or the arts.
- It is governed by its own board of directors or trustees and must comply with specific tax regulations distinct from those for public charities.
Examples
- Noun:
- The family established a private foundation to fund medical research.
- Unlike a community charity, a private foundation receives its primary funding from a single endowment provided by its founder.
Advanced Usage
- "To be classified as a private foundation": Refers to the legal and tax status determined by a government revenue service.
- The organization had to ensure its funding structure met the criteria to be classified as a private foundation.
Variants and Related Words
- Private operating foundation (n): A specific subtype of private foundation that primarily runs its own charitable programs rather than making grants to other organizations.
- Public charity (n): A contrasting type of charitable organization that receives a substantial part of its financial support from the general public or government.
Synonyms
- Grant-making foundation: Emphasizes its primary activity of awarding funds.
- Independent foundation: Highlights its control by an individual or family rather than public oversight.
Related Phrases
- Foundation assets: The financial resources and investments owned by the private foundation.
- Distribute grants: The primary action of a private foundation, meaning to give funds to other charitable organizations or causes.
Noun
-
a charity that does not receive a major part of its support from the public
