Differences Between Foundations and Other Charities - Exponent Philanthropy

Differences Between Foundations and Other Charities

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The terms foundation and charity often are used interchangeably, and organizations that technically are charities may even have “foundation” in their name (e.g., ABC Foundation). To further compound the confusion, many charitable organizations, such as colleges and hospitals, are affiliated with separate foundations that seek gifts and grants to support the main charitable organization, and both grantmaking and grantseeking foundations exist.

What is the difference between a private foundation and a public charity? Why is the distinction important?

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