Private Foundations: Tax Law and Compliance, 4th Edition

Chapter TwoStarting and Funding a Private Foundation

1. § 2.1 Choice of Organizational Form
2. § 2.2 Funding a Foundation
3. § 2.3 Estate Planning Principles
   1. (a) Decedents' Estates
   2. (b) Estate and Gift Tax Considerations
4. § 2.4 Foundations and Planned Giving
   1. (a) Introduction to Planned Giving
   2. (b) Charitable Remainder Trusts
   3. (c) Other Planned Giving Vehicles
   4. (d) Interrelationships with Private Foundation Rules
5. § 2.5 Acquiring Recognition of Tax-Exempt Status
   1. (a) Preparing Form 1023
   2. (b) Suggestions for PF-Sensitive Parts
   3. (c) The Substantially Completed Application
   4. (d) Recognition Application Procedure and Issuance of Determination Letters and Rulings
   5. (e) Application Processing Timeline
   6. (f) Issues Causing Applications to Be Routed to EO Technical
   7. (g) Exemption for State Purposes
6. § 2.6 Special Requirements for Charitable Organizations
7. § 2.7 When to Report Back to the IRS
   1. (a) When Should a Ruling Be Requested?
   2. (b) Changes in Tax Methods
   3. (c) Amended Returns
   4. (d) IRS Guidance and Examinations of Exempt Organizations
   5. (e) Achieving Positive Results

Creating a private foundation, while not a simple matter, need not be an overly complicated process and, it is hoped, can be accomplished efficiently using the resources in this book. As a prelude to the specific requirements for forming and funding a foundation, Exhibit 2.1 provides a brief overview of the steps taken in the formation stage of a private foundation's life.

Exhibit 2.1 Steps in Creating a Private Foundation

1. Step 1: Establish ...