When a foundation's board is not significantly controlled by members of the founding donor's family, it is frequently referred to as an independent foundation.

An individual usually founds these private foundations, often by bequest. They are occasionally termed "nonoperating" because they do not run their own programs. Sometimes individuals or groups of people, such as family members, form a foundation while the donors are still living. Many large independent foundations, such as the Ford Foundation, are no longer governed by members of the original donor's family but are run by boards made up of community, business and academic leaders. Private foundations make grants to other tax-exempt organizations to carry out their charitable purposes. Private foundations must make charitable expenditures of approximately 5% of the market value of their assets each year. Although exempt from federal income tax, private foundations must pay a yearly excise tax of 1%-2% of their net investment income. The Ford Foundation and the John D. and Catherine T. MacArthur Foundation are two examples of well-known "independent" private foundations.

Foundation in which family members are not in the trustee group, therfore the organization is more objective in its grantmaking decisions.