Exhibit

DIFFERENCES BETWEEN PUBLIC AND PRIVATE CHARITABLE ORGANIZATIONS

Charitable

Deduction

Excise Tax

Activities	Minimum

Distribution

Requirements

Annual

Filings
Private

Foundations	•limited to 30% of

AGI* for cash**

•other property is

limited to 20% and

basis	•2% of investment

income

•5-15% of among of

disqualified

transactions	•grants to other

organizations

•no lobbying

•limits on grants

to other Pfs

•self-initiated

projects	•5% of fair

market value

for invest-

ment assets	•all must

file Form

990-PF

•newspaper

notice
Private

Operating

Foundations	•limited to 30%

for appreciated

property, 50% for

cash	•same as for PFs	•carries out

self-initiated

projects

•no lobbying	•3⅓ fair

market value

investment

assets	•same as for

private

foundation
Public

Charities

•same as for POFs	•no tax on income

(except UBI)

•excise tax on

excess lobbying	•can lobby

•grant-making or

carry out own

projects	•none

•no excess

accumulation

of surplus	•file if

gross

revenue

over

$25,000

(form 990

or 990EZ)
*Adjusted gross income.

**And possibly marketable securities. See Chapter 14§4(b).

Source:	Private Foundations Tax Law and Compliance

Bruce R. Hopkins and Jody Blazek