Starting a Nonprofit (Part 3): Nonprofit Structure

Choosing a nonprofit's structure is an important step. In this video, we talk about the 3 types of 501(c)(3) nonprofit: Public Charity, Private Foundation, and Private Operating Foundation.
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[@NicDidier]

Can you share more information about #3 Private Operating Foundation? I think I understand the %85 rule but would like more clarification around it if at all possible.

[@eldacharm8547]

I'm confused about foundation. Can foundation be a public charity, not a private foundation? If I name my nonprofit organization Elda Foundation, does IRS automatically thinks it's a "private foundation", not a public charity?

[@FoundationGroup]

Yes, and no. There's a difference between branding as a "foundation" and being a foundation technically. Many nonprofits will have the word "foundation" in their name, but are actually public charities. That's OK, seeing as there are no rules prohibiting that. However, a true foundation is either a private foundation or a private operating foundation. If you want to use the word, but still be technically a public charity, then you are fine to do so.