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What is a foundation? A: A foundation is a non-governmental entity that is established as a nonprofit corporation or a charitable trust, with a principal purpose of making grants to unrelated organizations, institutions, or individuals for scientific, educational, cultural, religious, or other charitable purposes.
A private foundation is a 501(c)(3) nonprofit organization with few sources of funding and which makes grants to other charities rather than operating its own charitable services. Private foundations are often funded by a single individual, family, or corporation.