### Question
How is the term private foundation defined?


### Answer
The term **private foundation** is defined in *26 U.S.C. § 2503* as the following:

> given such term by section 509, except that such term shall not include any private operating foundation (as defined in section 4942(j)(3)).

#### Citation:
  - *26 U.S.C. § 2503*
  - Heading: **Subtitle B-Estate and Gift Taxes > CHAPTER 12-GIFT TAX > Subchapter A-Determination of Tax Liability**

