The letters PF stand for private foundation. The IRS uses this form to determine if a private foundation is complying with the Internal Revenue Code. The 990-PF form lists foundation assets, receipts, expenditures, compensation of officers and a list of grants made during the year. A chronological pattern of priority setting, proposal solicitation, proposal review, decision making and applicant notification. A statement of a foundation s goals, priorities, criteria and procedures.
Foundations make grants to other tax exempt organizations to carry out their charitable purposes.
Foundations must make charitable expenditures of approximately 5 percent of the market value of their assets each year. Although exempt from federal income tax, foundations must pay a yearly excise tax of one or two percent on their net investment income. A method of grantmaking practiced by some foundations. Leverage occurs when a small amount of money is given with the express purpose of attracting larger funding from other sources or of providing the organization with the tools it needs to raise other kinds of funds. Efforts by such organizations for self-defense issues, when asked to testify, or for nonpartisan research and analysis are generally considered exceptions to the lobbying restrictions.