Tax990 Knowledge Base

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.