Definition Of Private Foundation
So what’s a private foundation? Its main characteristic is that it is a non-profit organisation, funded by one entity (person or company). Its mission is to help a cause. Through the donation of money or property, the private foundation, like any foundation, will try to have a positive impact (social or environmental).
Behind the concept…
They are legal entities whose funds are provided by one source. It can either be from an individual or a family’s donations, will, legacy, or from a corporation. In this case, it is called a corporate foundation. But apart from this, what are their main characteristics?
- tax-exemptions. Legislation on private foundation may vary from one country to another, but in most countries, they are organisations that are free of taxes or, at least, have tax deductions.
- proper entity. Even if their founders are identified, private foundations are independent entities. They have their own board of directors, operational mode, etc.
- own actions. Private foundations usually operate through donations, but they can also set up their own actions.
Certain are big and well known…
An example is the Bill & Melinda Gates Foundation. It is globally considered one of the most transparent and effective non-profit for its policies and operative strategies. In fact, it works arm in arm with a lot of movements to enhance projects that aim to reduce extreme poverty in underdeveloped countries, improve health care and provide educational aid to low-income students in the United States.
…other ones are smaller
There are a lot of smaller private foundations that operate in the world. Less broadly known, they also have an impact on the world and help society. Even if we have this vision of the big foundation, let’s not forget smaller actors.