WHO CAN A PRIVATE FOUNDATION GIVE MONEY (MAKE GRANTS) TO?
Private foundations typically carry out their philanthropy by making grants to recognized public charities. This includes churches and synagogues, educational, scientific and cultural institutions, poverty relief agencies or any other organization that qualifies as a 501(c)(3) charity according to the IRS. In some instances, a private foundation may provide grant money to individuals in the form of scholarships or grants for a particular project such as an art grant.
Private foundations are generally precluded form making grants to political campaigns or organizations that exist to influence legislation and voting.
The IRS requires that private foundations pay out at least 5% of the previous year’s average net assets for charitable purposes. This can include certain administrative expenses. There is no maximum limit on giving.
Reference: Nonprofitlegalcenter.com
Kindly visit our Estate Planning and Trusts and Estate Planning websites or contact one of our Estate Planning Attorneys, Philadelphia or Philadelphia Estate Attorneys at 215-977-8200 for more information on this topic.