A private foundation is a tax-exempt organization that does not rely on broad public support and generally claims to serve humanitarian purposes.

One of the characteristics of the legal entities existing under the status of "Foundations" is a wide diversity of structures and purposes.

Under Canadian law, since 1967, a private foundation is controlled by a single donor or family through a board that is made up of a majority (more than 50%) of directors at non-arm's length.

A public foundation is governed by a board that is made up of a majority of directors at arm's length.

A private foundation is not allowed to engage in any business activity, but it can operate its own charitable program.

[7] A private foundation, in the United States, is a charitable organization described in the Internal Revenue Code by section 509.

[9] Private foundations are subject to 1.39% excise taxes found in section 4940 through 4945 of the internal revenue code.

[10] Once a charity becomes a private foundation, it retains that status unless it follows the difficult termination rules of section 507.

[11] In the United States, there are several restrictions and requirements on private foundations, including: Violations of these provisions give rise to taxes and penalties against the private foundation and, in some cases, its managers, its substantial contributors, and certain related persons.

The Austrian private foundation is considered a legal person having beneficiaries rather than shareholders or proprietors and may be established for any purpose.