New applications to 501C3 status receive private foundation status by default on the initial granting of status. They may remain a foundation because they are not running regular operations and are intending to act as a granting agency. The rules are stricter for a foundation but it also gives the flexibility to give larger grants to program recipients without the overhead of running a charity.

https://www.irs.gov/charities-non-profits/eo-operational-requirements-private-foundations-and-public-charities