Public charities make up the majority of 501(c)(3) organizations and most people forming a new organization usually asume all 501(c)(3) organizations have public charity status. However, public charities enjoy advantages over private foundations. Some of these advantages include higher donor tax-deductible giving limits and the ability to attract support from other public charities or private foundations. 

A private foundation is a charitable organization that fails to qualify as a public charity. While still a nonprofit organization, a private foundation is usually created by a single primary donation from an individual or a business and whose funds and programs are managed by a small group.