Yes. Private foundations are subject to excise taxes in the Internal Revenue Code (IRC) 4940 to 4946 whereas public charities are not. These taxes are the net investment income taxes under IRC section 4940; the self-dealing acts rules under section IRC 4941; failure to distribute income rules under IRC section 4942; the business enterprise rules under IRC section 4943; jeopardizing investments in IRC section 4944; and taxable expenditures under IRC section 4945. Private foundations file Form 990-PF annually. There are numerous questions related to these excise tax provisions on that form. In certain circumstances if the excise taxes are involved an additional filing of IRS Form 4720 must be made. Section 7.27 of the IRS Tax Exemption Manual has a significant amount of information on these various excise taxes. An index of this information is available in Part 7. Rulings and Agreements.
Yes there are stricter limitations on gifts to private foundations. Gifts to public charities by individuals have an annual limit of fifty percent of the donor's adjusted gross income. Gifts to private foundations however place that limit at thirty percent of the donor's adjusted gross income. The figures are somewhat different for corporate donors who can deduct ten percent of their taxable income. If the contribution is capital gain property rather than cash, the limitation is then thirty percent for public charities and twenty percent for foundations. The Iowa Principles and Practices for Charitable Nonprofit Excellence states that "Charitable nonprofits must be aware of and comply with Internal Revenue Code provisions (see e.g. I.R.C. section 170)" (VIII E 2). This is to make sure inaccurate information about gifts is not passed on to donors. A good source for these rules is IRS Publication 526 Charitable Contributions
An endowment is a fund that is kept in perpetuity. The original contribution is invested and only the investment income and gains from the investment are used to support the charitable grants. The original contribution stays intact and continues to grow and generate charitable collars. -- Fond du Lac Area Foundation
Community foundations are designed to cooperate with other charitable organizations in the area. Community foundations apply their funds to a wide range of community needs. The ability of other nonprofit organizations to improve the quality of life within a community is enhanced by cooperation with community foundations.
Each community foundation adopts gift and fund acceptance policies that address minimum fund size, types of fund options, types of gift mechanisms, and policies and procedures for accepting various types of assets. A community foundation honors the charitable intentions of its donors consistent with community needs and applicable laws and regulations. Any foundation can forward you their policies upon request. -- Council on Foundations
A community foundation informs and educates donors about community issues and grantmaking opportunities. A community foundation widely distributes grant guidelines to ensure the fullest possible participation from the community it serves. -- Council on Foundations