What is a private non-operating foundation?

• A private non-operating foundation is a foundation that grants money and distributes funds to other charitable organizations. These foundations contribute money for charitable purposes and make up most of the private foundation community. 

• These foundations are also referred to as grant-making foundations by the IRS since these foundations are neither exempt operating foundations nor private operating foundations. 

• Also, these foundations are eligible to conduct their charitable activities and award scholarships, make grants to individuals, international organizations that aren’t recognized as 501(c)(3) charities, etc.

Note: A taxpayer seeking to deduct a charitable donation made to a private nonoperating foundation must obtain sufficient records or other proof from the foundation proving that the foundation made the necessary qualifying distributions within the required time period.