From Joanne Fritz,
Your Guide to Nonprofit Charitable Orgs.
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Definition: A nongovernmental, nonprofit organization with funds (usually from a single source, such as an individual, family or corporation) and program managed by its own trustees or directors. It is established to aid social, educational, religious or other charitable activities, primarily through grantmaking.

U.S. private foundations are tax-exempt under Section 501(c)(3) of the Internal Revenue Code.

Private foundations are generally founded by an individual, a family or a group of individuals, and are organized either as a nonprofit corporation or as a charitable trust.

Examples: "A private foundation can be founded by a family or a corporation."