What is the difference between a non-profit corporation and a non-profit foundation?
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What is the difference between a non-profit corporation and a non-profit foundation?
Asked on January 24, 2012 under Business Law, Delaware
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The term non-profit foundation technically has no definitive meaning per se unless one looks its definintion up in the Internal Revenue Code. In general, a non-profit foundation typically gets its funding from one single source such as a family trust and the non-profit foundation then disperses funds from it to assorted charities that it may desire to contribute to.
A non-profit corporation (a tax exempt corporation) is a charity that receives funding from numerous sources and then uses the money to further the goals of the charitable corporation itself where the funds are typically not donated to other charities.
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