Private Non-Operating Foundation

Overview

A 501(c)(3) organization, usually funded and controlled by one family or individual, whose primary activity is making grants to other charities. The founders keep lasting control over investments, governance, and grantmaking, making it a vehicle for a named, multi-generational philanthropic legacy. It must distribute at least 5% of its assets for charitable purposes each year.

Best For

Families wanting permanent control and a named legacy
Donors planning multi-generational involvement in giving
Those who want to employ family members in philanthropy and set their own grant strategy

📊 Key Tax & Giving Advantage

Total donor control over investments and grants, with an immediate deduction on contributions (up to 30% of AGI for cash, 20% for appreciated assets).

Considerations

Annual 5% minimum distribution requirement
Subject to a 1.39% excise tax on net investment income and strict self-dealing rules
Higher administrative and compliance burden (annual Form 990-PF)

Interested in Private Non-Operating Foundation?

Every philanthropic structure should be tailored to your assets, goals, and state law. Request a private consultation and we'll help you choose and establish the right vehicle.

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