Tuesday, December 20, 2011

What is a Private Foundation?

There are two types of private foundations. One is a non-operating foundation, which makes donations to other charities. The most common type of foundation, these entities distribute grants to other non-profit entities. The other type of foundation is an operating foundation, which provides direct services to the public instead of providing funding to another organization.

Private foundations can take the form of either a non-profit corporation or a trust. Both forms are governed by both state and federal law. Most private foundations can continue forever.

Upon dissolution, the organization's remaining assets must be distributed for one or more tax exempt purposes. Typically it involves giving the remaining assets to another non-profit organization.

Thanks to Nancy M. Bonniwell for sharing this information as part of the State Bar of Wisconsin's Annual Estate Planning Update - December 2011. Remember, a blog is not a substitute for legal advice.

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