Generally, organizations that are classified as public charities are those that (i) are churches, hospitals, qualified medical research organizations affiliated with hospitals, schools, colleges and universities, (ii) have an active program of fundraising and receive contributions from many sources, including the general public, governmental agencies, corporations, private foundations or other public charities, (iii) receive income from the conduct of activities in furtherance of the organization’s exempt purposes, or (iv) actively function in a supporting relationship to one or more existing public charities.
Private foundations, in contrast, typically have a single major source of funding (usually gifts from one family or corporation rather than funding from many sources). Private nonoperating foundations have as their primary activity the making of grants to other charitable organizations and to individuals, whereas private operating foundations have as their primary activity the direct operation of charitable programs. (Source: irs.gov)
There are three basic types of charitable giving vehicles an individual can utilize:
Direct giving to a public charity. There are a variety of different methods by which to give directly to a public charity. Please contact your KSM Tax Advisor for guidance.
Private Foundation
Donor Advised Funds. Donor advised funds are typically administered through a Community Foundation.