According to IRS publication 4221-PF every organization that qualifies for tax-exempt status under section 501(c)(3) of the Code is further classified as either a public charity or a private foundation.
Under section 508, every organization is automatically classified as a private foundation unless it meets one of the exceptions listed in section 509(a).
Private foundations typically have a single major source of funding (usually gifts from one family or corporation rather than funding from many sources) and most have as their primary activity the making of grants to other charitable organizations and to individuals, rather than the direct operation of charitable programs
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