CHAPTER 12

Private Foundations—General Concepts

§ 12.2 Special Rules Pertaining to Private Foundations

*(a) Types of Private Foundations

*(c) Definition of Special Terms

§ 12.4 Termination of Private Foundation Status

*(d) Conversion of Private Foundation into a Public Charity

*(g) Notifying the IRS

§ 12.2 Special Rules Pertaining to Private Foundations

(a) Types of Private Foundations

*p. 280. Add to footnote 18:

Also see §15.4(b) and §53.4942(a)-3(c)(2)(iv).

(c) Definition of Special Terms

p. 282. Add after second sentence in Substantial Contributor paragraph:

For self-dealing purposes only, this term does not include any charitable organization, including a private foundation.1

*p. 284. Add at end of Other Disqualified Persons paragraph:

The self-dealing prohibition extends to transactions or other arrangements between a corporate foundation and the for-profit business that is related to it, except for a case in which the positive public recognition accorded a for-profit company due to the charitable activities of its corporate foundation is not the type of private benefit that is a transgression of the self-dealing rules.

The directors and officers of a for-profit organization that controls a corporate foundation are not, by statute, disqualified persons (for that reason) with respect to the foundation. If, however, employees of the for-profit organization are significantly involved in the management of a related corporate foundation on a day-to-day basis, the IRS might assert ...

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