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FUNDAMENTAL CONCEPTSall charitable organizations are the same. In general, the federal tax law categorizescharitable organizations that are eligible donees, for purposes of the charitablededuction, as being one of the following types:• Public charitable organizations• Private charitable organizations (private foundations)• A hybrid of the two• Other eligible donees 340The terms public and private, as used in this context, often generate confusion.The term public is not used in the sense of a governmental entity (as in apublic school), nor is the term private used in the sense of business activity (as inprivate enterprise) or the counterpart of a governmental entity (such as a privateschool). Neither term has anything to do with the nature of a charitable organization’sboard of directors or trustees (as in a public board, rather than a privateone). These terms, as used in the charitable giving and tax-exempt organizationssettings, relate to how the charitable organization is financially supported.Charitable organizations are presumed to be private foundations. 341 Thispresumption is rebuttable (if the facts so warrant) by a showing that the organizationqualifies as one of the types of public charitable organizations or as one ofthe hybrid charitable organizations. Since there is no tax law advantage to beinga private foundation, most charitable organizations strive to rebut this presumption,principally to avoid the private foundation rules, 342 to facilitate maximumcharitable contribution deductions, and to escape the more burdensome federalreporting obligations of private foundations. 343(a) Public Charitable OrganizationsPublic charitable organizations are the most favored of the categories of charitableorganizations for charitable giving purposes. There are essentially four categoriesof public charitable organizations:• The institutions• Publicly supported organizations (donative entities)• Publicly supported organizations (service provider entities)• Supporting organizationsThe Institutions. Some entities in the category of public charitable organizationsare classified as institutions because they satisfy the requirements of at leastone category of public institution. These entities are not private foundations—notbecause of how they are funded, but because of the nature of their operations.340 This reference to other charitable donees is to organizations that are the subject of § 3.3, text accompanied bynotes 265–268.341 IRC § 509(a).342 See Tax-Exempt Organizations ch. 11.343 See Tax-Exempt Organizations § 24.3. 104