Isn't "Foundation" a word that is usually for non-profits? I understood the different between "Charity" and "Foundation" just to be about "Public" vs "Private" organization, but both of them being non-profits. Am I misunderstanding what "Foundation" means here?
The foundation here is a 501(c)(3) non profit. However it is not a public charity, which is a sub classification that comes with stricter rules and higher donation tax write-off limits.
People tend to assume all 501(c)(3)/nonproft and "public charity" are synonymous, but they aren't and that can make discussions like this confusing.
> However it is not a public charity, which is a sub classification that comes with stricter rules and higher donation tax write-off limits.
It sounds like you mean public charities have stricter rules. I find the opposite to be true. There are additional rules and reporting requirements that apply only to private foundations because of the limited funding and tight control of such organizations by a close-knit group of people.
The rules are different, so which you view as more restrictive dependa on your perspective.
In this case, the context is discussion of this claim:
> I thought the tax-benefits of a non-profit were supposed to be tied to some governance requirements and operating in pursuit of some mission other than profit
Thr greater tax benefits of public charities are indeed tied to governance requirements (specifically rules that restrict the board makeup of public charities) and mission alignment.
