Baically there are two types of foundations....private and community.
I set up a foundation under its own entity designed for my family to distribute chartible givings. In that vein I am the sole contributor to that foundation and may have my spouse, children as directors of the board.
It is classified under 503c and as a non profit orgaizatin it may exclude income tax, and as a charitble foundation it also may exclude property tax and sales tax.
as a private foundation the source is singular in nature in that is funded from and individual or corporation. The gransts are made to individuals or organized chariites, the private does not operae charities on its own.
To simply answer you question the private foundation DOES NOT donate other peoples money, it is the money from their soul source. Administart fees governed by 503 can be drawn and at least 5% of the foundation must be distibuted each year. yea
My wife’s parents have also set-up a foundation with their money and it is distributed by my wife and her siblings. And they as a group decide where the money goes, most of which goes to children’s hospitals, educational institutions and their pet political causes.
Thanks to both of you for your explanations. I learn something new on FR everyday that I log on. :)