Until 1969, the term private foundation was not defined in the United States Internal Revenue Code.
Donors specify the charitable purpose of the foundation (example: grants for cancer research, scholarships for the needy, support of religious goals).
Yet, approximately two-thirds of the estimated 44,000 private foundations in the United States are believed to be family managed.
The private operating foundation will maintain a qualified staff as well as other personnel needed to carry out the program on a continuing basis.
These tests ensure that the private operating foundation is conducting its exempt activities directly and not simply making grants to other organizations.
The Carnegie Endowment for International Peace and the Getty Trust are examples of operating foundations.
Education (22%) and human services (20%) were the top funding priorities of corporate foundations in 2009, followed by public affairs/society benefit (19%), health (15%), arts and culture (14&), international affairs (4%), environment and animals (4%), and science and technology (2%).
All figures are based on the most current audited financial data in the Foundation Center's database as of November 16, 2014.
Given some charitable intent on the part of the founder, there are several substantial financial and personal benefits to creating a foundation.
He argues that adding monetary resources and supplementary goodwill to existing global efforts is not the only goal of private foundations, rather it is still likely that they pursue a partisan agenda.