If you’re contemplating establishing a private foundation in order to run charitable programs, it might be unclear whether an operating or non-operating foundation would be the best choice. You might assume that an operating foundation would make the most sense if you primarily want to engage in some kind of “hands-on” work, such as running a food bank. However, there are excellent reasons why you might prefer a non-operating foundation instead.
First, it helps to understand how operating and non-operating foundations compare. All private foundations share these commonalities: