Whether the entity is a newly created private foundation or a public charity that changes its foundation status to private non-operating foundation status, careful planning is needed to meet all the tax requirements.
Private foundations, in general, are subject to different rules and regulations than other types of charitable organizations, such as public charities. The key differences is that private foundations, are required to pay an excise tax on net investment income, required distributions or payouts, and the prohibition of certain transactions or investment ownership, including:
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