Nonprofit Law Basics: What is the Difference Between a Public Charity & a Private Foundation?

identical looking birds sit back to back how are they different

The terms of nonprofit entities can be so confusing … public charity … private foundation … private nonoperating foundations … private operating foundations … public charities that act as foundations. What are they, and how do you tell which is which?

Since 1968, the Internal Revenue Code has distinguished Section 501(c)(3) nonprofit organizations into two tax categories: private foundations and public charities…