A foundation that runs programs of its own and spends most of its income on these programs.
These foundations spend money on their own programs rather than use their income to give grants. Operating foundations confer a greater tax deductibility of gifts to the foundation (30% in a single year v. 20% for private non-operating foundations). Rather than give grants, many operating foundations issue "contracts." In general they follow the same rules that private non-operating foundations do, in addition to some other specific rules.
Also called private operating foundations, these entities are classified as private foundations, but are treated like public charities for purposes of the limitations on charitable contribution deductions and some of the private foundation excise tax rules. Rather than functioning solely as grantmaking organizations, operating foundations use the bulk of their income to provide direct charitable services or to run charitable programs of their own. To qualify as an operating foundation, specific rules, in addition to the many of the applicable rules for private foundations, must be followed.
Also called private operating foundations, operating foundations are private foundations that use the bulk of their income to provide charitable services or to run charitable programs of their own. They make few, if any, grants to outside organizations. To qualify as an operating foundation, specific rules, in addition to the applicable rules for private foundations, must be followed. The Carnegie Endowment for International Peace and the Getty Trust are examples of operating foundations.
A private foundation that primarily conducts programs of its own, expending its funds directly for the conduct of its own charitable activities rather than making grants to others. Qualified operating foundations must follow specific rules in addition to the applicable private foundation rules.
A 501(c)(3) organization classified by the IRS as a private foundation whose primary purpose is to conduct research, social welfare, or other programs determined by its governing body or establishment charter.