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Estate & Asset Protection
501(c)(3) grant-maker

Form a private foundation. 501(c)(3) for grant-making.

A private foundation is a 501(c)(3) charity funded by a single source (family, individual, or company) that primarily makes grants to other charities. Unlike public charities, the foundation does not solicit donations and is subject to stricter rules: 5% minimum annual distribution, 1.39% excise tax on net investment income, prohibitions on self-dealing. We form the entity, prepare Form 1023, and set up Form 990-PF compliance.

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How it works

How we handle Private Foundation, end-to-end.

A private foundation is a 501(c)(3) charity funded by a single source (family, individual, or company) that primarily makes grants to other charities.

1

Entity formation

Form a state nonprofit corporation (typically the donor's home state). Articles of Incorporation with required 501(c)(3) charitable purposes language. Initial board of directors (typically 3-5 family members).

2

Form 1023 application

Form 1023 IRS application for 501(c)(3) recognition. Private foundation classification automatic for foundations meeting the definition (single source of funding, not public charity). $600 IRS user fee.

3

Compliance setup

Set up Form 990-PF annual return system, EFTPS account for 1.39% excise tax, grant-making policies, self-dealing avoidance procedures.

4

Operational handoff

Foundation operational. Initial endowment funded. Grant-making policies and budget established. Annual Form 990-PF schedule set up.

What we'll set up for you

A clean handoff, in four steps.

You give us the basics. We handle the state, the IRS, and the compliance clock so you can focus on the business.

01 · Name + Brand

A name that's actually available.

Real-time check against the state register, USPTO trademark database, and matching domains.

02 · State filing

Filed with the Secretary of State.

We submit your Articles, pay the state fee on your behalf, and return the stamped certificate.

03 · Federal IDs

EIN + the right tax setup.

Federal Employer ID with the IRS, plus state tax accounts when your business needs them.

04 · Stay compliant

Registered Agent + deadline tracking.

Your agent on file in every state, with every renewal and annual report tracked in one calendar.

Pricing

Transparent private foundation pricing.

Government fees pass through at cost. No upsells.

Plus year-1 management

$9999
Form 990-PF prep included.

Foundation formation plus year-1 management: first Form 990-PF preparation, 5% distribution tracking, excise tax payment, board governance support.

Get started

Ongoing foundation management

$3999
Annual subscription.

Year 2+ ongoing management at $3,999/year. Form 990-PF, distribution tracking, excise tax, board meeting support, grant compliance review. For foundations not large enough to hire dedicated staff.

Get started
FAQ

About the Private Foundation Formation Service.

What is a private foundation?
A private foundation is a type of 501(c)(3) organization typically funded by a single source, an individual, family, or company, that makes grants or runs charitable programs, unlike a public charity that draws broad public support. It offers control but faces stricter rules. We help form the entity and pursue exemption.
How is a private foundation different from a public charity?
A public charity gets broad public support and lighter rules, while a private foundation is usually funded by one source, keeps more control, but faces stricter regulations, an excise tax on investment income, minimum annual distribution requirements, and self-dealing prohibitions. We help you choose which fits your charitable goals.
Why choose a private foundation?
For control and a lasting charitable vehicle: a family or company can fund a foundation, direct its giving, and involve family across generations, accepting more compliance in exchange for that control. We help set it up and flag the ongoing obligations so the control comes with eyes open.
What are the main rules for private foundations?
They must distribute a minimum percentage of assets to charity annually, avoid self-dealing between the foundation and its insiders, pay an excise tax on investment income, and file the Form 990-PF. These rules are strict and enforced. We flag them so the foundation operates compliantly.
How do I start a private foundation?
You form the nonprofit entity, adopt governing documents, fund it, and apply to the IRS for 501(c)(3) recognition, which for a foundation involves specific requirements. We handle the formation and guide the exemption process for a foundation structure.
What is the minimum distribution requirement?
A private foundation must pay out roughly five percent of its net investment assets each year for charitable purposes, or face penalties, which ensures the money is actually used for charity rather than just held. We flag this so the foundation's grantmaking meets the requirement each year.
What is self-dealing and why does it matter?
Self-dealing is a prohibited transaction between the foundation and its insiders, such as an owner or family member, and it carries steep penalties even if the deal seems fair. Avoiding it is a core compliance duty. We flag the rule so the foundation's transactions stay clean.
Is a donor-advised fund an alternative?
Often yes: a donor-advised fund gives much of the giving flexibility with far less administration and no foundation-specific excise tax or distribution rules, which suits many donors better than a private foundation. We help you weigh a foundation against simpler alternatives before committing.
Can File.Business help me start a private foundation?
Yes: we form the nonprofit, prepare the governing documents, guide the 501(c)(3) exemption for a foundation, and flag the distribution, self-dealing, and 990-PF obligations, so your foundation is set up and stays compliant with its stricter rules.
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Your operating system, not a transaction
Every deadline auto-tracked across your entities. Compliance Score visible year-round.
Transparent pricing
No hidden fees. No upsells at checkout. State fees disclosed upfront.

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