Earlier quoted context omitted.
I think I could start the Evil Foundation and as long as I don't file for 501(c)(3) status, I'm still for-profit.
The foundation here is a 501(c)(3) non profit. However it is not a public charity, which is a sub classification that comes with stricter rules and higher donation tax write-off limits. People tend to assume all 501(c)(3)/nonproft and "public charity" are synonymous, but they aren't and that can make discussions like this confusing.
It sounds like you mean public charities have stricter rules. I find the opposite to be true. There are additional rules and reporting requirements that apply only to private foundations because of the limited funding and tight control of such organizations by a close-knit group of people.