Public schools are a type of organization that is created by parents, teachers, businesses, and community leaders and have the freedom to organize their activities around a core mission, curriculum, or teaching method. They are operated under the supervision of an elected or appointed school committee and a superintendent. Public schools are considered a department of the municipal government and serve a single city or town. Two or more municipalities can also join together to form a regional school district, which is considered a separate and independent unit of local government.

Although schools may apply for tax exemption under 501(c)(3), that step is not necessary to qualify for private foundation grants. The IRS generally treats schools and other educational institutions as government entities. These organizations are tax-exempt on the basis of having an educational purpose, and their activities must reflect that goal. Schools can follow best practices for obtaining and maintaining their tax-exempt status as 501(c)(3) organizations, which includes developing an appropriate mission statement, establishing a governing board to oversee operations, and ensuring all funds are used for educational purposes.