The tax consequences to a donor of making a charitable contribution to an exempt organization classified as a private foundation may be less favorable than the tax consequences to a donor of making a charitable contribution to an exempt organization that is a public charity.

Question

Quizplus · Accepted Answer

Private foundations are subject to certain limitations and restrictions that do not apply to public charities, such as lower deductibility limits for contributions and excise taxes on certain transactions. Therefore, making a charitable contribution to a private foundation may result in less favorable tax consequences for the donor compared to a public charity.

The Tax Consequences to a Donor of Making a Charitable